§377 Penalties

Summary

If someone knowingly breaks the rules in this chapter, they can go to jail for up to 3 years, be fined under Title 18, or both. State, local, and tribal governments cannot be criminally punished. A common carrier or independent delivery service, or its employee, is criminally liable for violating section 376a(e) only if the violation is done knowingly either for payment (or a promise to be paid) or to help a delivery seller avoid following that law. Violations can also bring civil fines. For a delivery seller the fine is the greater of $5,000 for a first violation (or $10,000 for later ones) or 2 percent of that seller’s cigarette or smokeless tobacco gross sales in the prior 1‑year period. For a carrier or delivery service the fine is $2,500 for a first violation or $5,000 for any violation within 1 year of a prior one. Civil fines come on top of criminal penalties and any other court-ordered relief, including unpaid taxes. An employee faces civil fines only if the act was intentional and done for payment or to help a seller evade the law. A carrier avoids civil fines if it has and enforces effective compliance policies, or if the employee acted outside their job duties or against those policies.