But just as gun companies deny that they are responsible for persons who buy guns from distributors, cigarette companies say they have no control over bootlegged cigarettes. Yet investigators and some wholesalers contend there is ample evidence that the cigarette companies and discount stores are aware of the smuggling and do nothing about it. Sophisticated marketing programs that track cigarette sales in different areas establish this, investigators say. Tobacco manufacturers send representatives to visit cigarette retailers, where they can see which state stamp is on each package sold. The smuggling chain begins when cigarettes come off the assembly line and are distributed either directly or through wholesalers to large Virginia discount stores, including Sam's Club and Costco, according to smugglers and industry sources.
Some smugglers buy directly from wholesalers.
A typical smuggler loads up with thousands of packs per trip to New York. The financial incentives are enormous. But the companies have no incentive to help.