NEW YORK (AP) -- An appeals court says New York City cannot try to scare smokers by requiring grotesque images of diseased lungs and decaying gums at stores that sell cigarettes. It says the federal government gets to decide how to warn people about the dangers of smoking tobacco.

The 2nd U.S. Circuit Court of Appeals in Manhattan issued its ruling Tuesday. It rejected a 2009 city Board of Health resolution requiring tobacco retailers to display signs bearing graphic images showing the adverse health effects of smoking.

The appeals court says the resolution is pre-empted by the Federal Cigarette Labeling and Advertising Act, enacted by Congress in 1965.

Richmond, Va.-based cigarette manufacturer Philip Morris USA says it's pleased with the court's ruling. The city's health department says the ruling is likely to reduce the number of smokers who quit.