§377 Penalties

Summary

Knowingly breaking these rules can lead to jail for up to 3 years, a fine under title 18, or both. State, local, and tribal governments are not subject to criminal punishment. A carrier, delivery company, or their employee is criminally liable for breaking section 376a(e) only if they do it knowingly as payment or a promise of payment, or to help a seller break or avoid the rules in section 376a. Civil fines also apply. A delivery seller pays the greater of $5,000 for a first violation ($10,000 for later ones) or 2 percent of its cigarette or smokeless tobacco gross sales in the preceding 1-year period. A carrier or delivery service faces $2,500 for a first violation and $5,000 for a repeat within 1 year. Civil fines are added to any criminal penalties and other court orders, including unpaid taxes. Carrier employees face civil fines under the same intentional-payment-or-evading rules. A carrier or delivery service is not liable if it has and enforces effective compliance policies, or if a worker acted outside their job duties or against those policies while handling orders or packages.