What are the penalties for noncompliance?
A knowing violation of the PACT Act can carry a three-year prison sentence and can result in a $5,000 fine for the first offense and a $10,000 fine for subsequent offenses. (15 USC 377.) Additionally, sellers can be fined in an amount equal to 2% of the gross sales of “cigarettes” (which, again, includes ENDS used with any substance) for a one-year period ending on the date of the violation.
Who enforces the PACT ACT?
The federal agency that enforces the PACT Act is the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
What are the labeling requirements for package shipping?
For any shipping package containing cigarettes or smokeless tobacco, the delivery seller shall include on the bill of lading—if any—and on the outside of the shipping package—on the same surface as the delivery address—the following clear and conspicuous statement:
“CIGARETTES/SMOKELESS TOBACCO: FEDERAL LAW REQUIRES THE PAYMENT OF ALL APPLICABLE EXCISE TAXES, AND COMPLIANCE WITH APPLICABLE LICENSING AND TAX-STAMPING OBLIGATIONS.”
What is Interstate Commerce?
Interstate Commerce is between a State and any place outside the state, and commerce between a state and any Indian country in the state, or commerce between points in the same state but through any place outside the state or through any Indian country.
What are the delivery requirements?
Delivery sellers shall not accept a delivery sale order from a person without:
1. Obtaining the full name, birth date, and residential address of that person; and
2. Verifying that information using a commercially available database or aggregate of databases regularly used by government and businesses for age and identity verification and authentication.