Web Cigarette Sales Crackdown Leads to 110 Layoffs

As a result of a nationwide deal to crack down on Internet cigarette sales, Ron’s Smoke Shop in Vandalia, NY is laying off 110 employees from its online and call center operations, according to news reports.

Gregg Prockton, COO at Ron’s Smoke Shop, said the initial cutback phase has begun and would “continue over the course of a couple weeks.” The business and several others on the Seneca Nation reservations in Western New York have been selling tax-free cigarettes, tobacco products and gasoline under their sovereign nation status for several years. An ongoing issue has been New York State trying to collect sales-tax revenue from Native American retailers.