Sec. 4.5. (a) This section applies to a merchant that is not a cigarette manufacturer. (b) Except as provided in subsection (d), a merchant may not mail or ship cigarettes as part of a delivery sale to an Indiana resident or retailer (as defined in IC 24-3-2-2 (d)) that is not a distributor. (c) If the commission determines that a merchant has violated subsection (b): (1) a distributor may not accept a shipment of cigarettes from the merchant for a period, not to exceed one (1) year, determined by the commission; and (2) the commission may impose a civil penalty, not to exceed five thousand dollars ($5,000), on the merchant for each violation of subsection (b), as determined by the commission. (d) A merchant may make a drop shipment of tobacco products to an Indiana resident or retailer that is billed through a distributor.
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