State University of New York Institute of Technology
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NY State joins NYC in suing FedEx over untaxed cigarettes

Link to article:

http://www.reuters.com/article/2014/03/31/fedex-newyork-idUSL4N0MS3MM20140331

The article at hand discussed how New York State and New York City are accusing FedEx of knowingly shipping untaxed cigarettes.  FedEx is a highly used shipping company by most individuals due to the fact that FedEx has a strict privacy policy of not checking a customer’s package.  FedEx has created a partnership with a Shinnecock Smoke shop to delivery packages.  New York attorney general believes that FedEx knew there were shipping cigarettes and did not report.  FedEx is being sued for $239 million for untaxed cigarettes. 

The main problem with this article is that NYC did not get its fair share of taxes from cigarettes.  New York City has been known to have one of the highest taxes on cigarettes across the nation.  FedEx defiantly knew that cigarettes would be shipped when they partnered with the cigarette shop, but I am sure they did not want to violate their privacy policy.  If FedEx had violated this policy then there is nothing stopping customers from using UPS or USPS instead of FedEx.  It is somewhat about trust with FedEx and their reassuring private policy on packages.  


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