Arkansas Code § 20-27-2107 - Penalties

(a) (1) A manufacturer, wholesaler, or any other person or entity that knowingly sells or offers to sell cigarettes, other than through retail sale, in violation of § 20-27-2104 is subject to a civil penalty in an amount not to exceed one hundred dollars ($100) for each pack of such cigarettes sold or offered for sale.

(2) The penalty against a person or entity shall not exceed one hundred thousand dollars ($100,000) during any thirty-day period.

(b) (1) A retailer that knowingly sells or offers to sell cigarettes in violation of § 20-27-2104 is subject to a civil penalty in an amount not to exceed one hundred dollars ($100) for each pack of such cigarettes sold or offered for sale.

(2) The penalty against a retailer shall not exceed twenty-five thousand dollars ($25,000) for sales or offers to sell during any thirty-day period.

(c) In addition to any penalty prescribed by law, a corporation, partnership, sole proprietor, limited partnership, or association engaged in the manufacture of cigarettes that knowingly makes a false certification under § 20-27-2105 is subject to a civil penalty of at least seventy-five thousand dollars ($75,000) and not to exceed two hundred fifty thousand dollars ($250,000) for each false certification.

(d) A person who violates any other provision of this subchapter is subject to a civil penalty for a first offense in an amount not to exceed one thousand dollars ($1,000) and for a subsequent offense in an amount not to exceed five thousand dollars ($5,000) for each violation.

(e) It is a defense in an action for civil penalties that a wholesaler, retailer, or a person in the stream of commerce relied in good faith on a manufacturer's certificate or marking that the cigarettes comply with this subchapter.

(f) (1) An authorized representative of the Director of the Department of Finance and Administration or the Director of Arkansas Tobacco Control may seize and take possession of cigarettes:

(A) For which no certification has been filed as required by § 20-27-2105; or

(B) That have not been marked as required by § 20-27-2106.

(2) (A) Cigarettes seized under this section shall be destroyed.

(B) Before the destruction of cigarettes seized under this section, the true holder of the trademark rights in the cigarette brand shall be permitted to inspect the cigarettes.

(g) (1) In addition to any other remedy provided by law, the Attorney General may file an action in circuit court for a violation of this subchapter, including petitioning:

(A) For preliminary or permanent injunctive relief against a manufacturer, importer, wholesaler, retailer, or any other person or entity to enjoin the person or entity from selling, offering to sell, or affixing tax stamps to cigarettes that do not comply with the requirements of this subchapter; or

(B) To recover costs or damages suffered by the state because of a violation of this subchapter, including enforcement costs relating to the specific violation and attorney's fees.

(2) Each violation of this subchapter or of the rules adopted under this subchapter constitutes a separate civil violation for which the Director of Arkansas Tobacco Control or the Attorney General may obtain relief.

(3) Upon obtaining judgment for injunctive relief under this section, the Director of Arkansas Tobacco Control or the Attorney General shall provide a copy of the judgment to all wholesalers to which the cigarettes have been sold.

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Last modified: November 15, 2016