Is it legal for the Marlboro representative to tell me to set my price for Camel to the dame as his or her will pull the stock from my shelves?

This doesn't sound right to me.  I'm not a Washington State lawyer, and this is an area where the law can vary a fair amount from one state to the next.  For advice you can rely on, you need to have an attorney in your area evaluate all of the facts, which will probably go quite a bit beyond what you could put in a question here.  One place to find a qualified attorney is our website, http://attorneypages.com

There are a number of laws that could have something to do with this.  The laws against restraint of trade, to protect people from monopoly power and what is sometimes called predatory competition, are the most likely to matter here.