The City of New York has filed a lawsuit against Price Point Distributors Inc., accusing the company of illegal e-cigarette sales. The complaint was filed on Nov. 7, 2024, in the U.S. District Court for the Eastern District of New York. The City is suing Price Point, doing business as Price Point NY and pricepointny.com, along with its executives Weis Khwaja and Hamza Jalili.
The City alleges that Price Point and its associates have engaged in widespread illegal internet sales of electronic nicotine delivery devices, commonly known as e-cigarettes or vapes. The lawsuit claims the defendants violated several federal, state, and local laws, including the Prevent All Cigarette Trafficking (PACT) Act, the Racketeer Influenced and Corrupt Organizations (RICO) Act, New York Public Health Law § 1399-11(1-a), and N.Y.C. Admin. Code § 17-715(b)(1).
The City argues that Price Point’s actions have contributed to the public health crisis caused by flavored e-cigarettes, which are particularly appealing to young people because of their candy-like flavors. The lawsuit highlights how the products are marketed in ways that attract youth, such as using packaging that resembles children's toys or featuring popular cartoon characters.
Additionally, the complaint accuses Price Point of evading taxes and regulatory oversight by failing to register as a delivery seller and not labeling e-cigarette packages as required by law. These actions are described as mail and wire fraud under RICO statutes.
The City seeks injunctive relief to halt further illegal sales, damages for harm caused by the actions, statutory penalties for each violation, and other appropriate remedies.
Representing the plaintiff is Acting Corporation Counsel Muriel Goode-Trufant from the City of New York's legal team. Case I.D. 1:24-cv-07762.