Restraining Order Issued On RYO Machine Rule

According to a Nov. 15 Court decision, the U.S. Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) is immediately restrained from enforcing the rule issued on Sept. 30, 2010 that regulates the commercial size cigarette-making machines being used in retail stores, the National Association of Tobacco Outlets (NATO) reported.

The Nov. 15 order also states that the temporary restraining order is scheduled to expire within 14 days of Nov. 15, unless the judge, for good cause, extends the temporary retraining order for another 14 days or the TTB consents to a longer extension of the restraining order.

Several companies including RYO Machine Rental LLC, Tobacco Outlet Express LLC, and Tightwad Tobacco LLC filed a federal lawsuit against  TTB,  challenging the ruling on RYO machine regulation issued by the TTB.  While the federal district court judge initially denied the plaintiff’s request for a temporary restraining order against the enforcement of the TTB rule, the judge held another hearing on the case on Nov. 12 and issued an order on Nov. 15, reversing his earlier decision and granted a 14 day temporary restraining order against enforcement of the TTB rule.

 

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