After reading Liability of Retailers and Sellers under Republic Act. No 10643 or the Graphic Health Warnings Law, read also What is Republic Act No. 10643 or “The Graphic Health Warnings Law”?
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Manufacturer refers to any person or entity that is engaged in the business of manufacturing or assembling tobacco products
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Retailer refers to any person or entity engaged in the direct sale or offer for sale of tobacco products
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Manufacturers and retailers may be imprisoned for violation of the Graphic Health Warnings Law
Previously, we wrote about graphic health warnings under Republic Act No. 10643 or “The Graphic Health Warnings Law”
What is the penalty if there are violations of the graphic health warnings?
The law says:
The penalty would depend whether the violator is a manufacturer or a retailer.
Know that a manufacturer refers to any person or entity that is engaged in the business of manufacturing or assembling tobacco products. A retailer on the other hand, refers to any person or entity engaged in the direct sale or offer for sale of tobacco products to consumers or end-users.
Thus, according to law, the following penalties shall individually apply to manufacturers (importers and distributors included) as well as their agents or representatives for any violation on the graphic health warnings, in so far as they are responsible for providing display materials that are in violation of the law:
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On the first offense, a fine of not more than Five hundred thousand pesos (P5OO, OOO.OO);
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On the second offense, a fine of not more than One Million pesos (P1,000,000.00); and
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On the third offense, a fine of not more than Two Million pesos (P2,000,000.00) or imprisonment of not more than five (5) years, or both, at the discretion of the court provided, that the business permits and licenses, in the case of a business entity or establishment shall be revoked or cancelled.
If the guilty officer is a foreign national, he shall be deported after service of sentence and/or payment of applicable fines without need of further deportation proceedings and shall be permanently barred from re-entering the Philippines.
Each withdrawal or importation into the Philippine customs territory of noncompliant tobacco packages, regardless of size, for sale to the market, after the compliance date shall constitute one (1) offense. An additional penalty of One hundred thousand pesos (P1OO, OOO.OO) per day shall be imposed for each day the violation continues after having received the order from the Department of Trade and Industry (DTI) notifying the company of the infraction.
What about if the violator is a retailer?
The law says:
The following penalties shall individually apply to retailers or sellers of tobacco
products as well as their agents or representatives for any violation of the graphic health warnings insofar as they are involved in the display, offering for sale and selling of the covered products:
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On the first offense, a fine of not more than Ten thousand pesos (P50,000.00);
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On the second offense, a fine of not more than Fifty thousand pesos (P50,000.00); and
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On the third offense, a fine of not more than · One hundred thousand pesos (P100,000.00) or imprisonment of not more than one (1) year, or both, at the discretion of the court. The business permits and licenses, in the case of a business entity or establishment shall be revoked or cancelled.
Each day that noncompliant tobacco packages are found in the retail establishments of the retailers after the compliance date shall constitute one (1) offense. An additional penalty of Five thousand pesos (P5,000.00), per day shall be imposed for each day the violation continues after having received the order from the DTI notifying the retailers of the infraction provided, that the imposition of the fines shall take into consideration the annual gross sales, capital investment and employee size of the manufacturers, importers and distributors, and in the case of retailers and sellers, their total assets.
Do note that the administrative fines that may be imposed by the DTI for any violation of Republic Act No. 10643 or The Graphic Warnings Law shall not exceed Two Million pesos (P2,000,000.00) provided that the imposition of the fines shall take into consideration the annual gross sales, capital investment and employee size of the manufacturers, importers and distributors, and in the case of retailers and sellers, their total assets.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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