421B.3. Sales at less than cost--penalties

1. It shall be unlawful for any wholesaler or retailer to offer to sell, or sell, at wholesale or retail, cigarettes at less than cost to such wholesaler or retailer, as the case may be, as defined in this chapter.  Any wholesaler or retailer who violates the provisions of this section shall be guilty of a simple misdemeanor.
2. Evidence of advertisement, offering to sell, or sale of cigarettes by any wholesaler or retailer at less than cost to the wholesaler or retailer as defined by this chapter shall be evidence of a violation of this chapter.
3. a. The following civil penalties shall be imposed for a violation of this section:
(1) A two hundred dollar penalty for the first violation.
(2) A five hundred dollar penalty for a second violation within three years of the first violation.
(3) A thousand dollar penalty for a third or subsequent violation within three years of the first violation.
b. Each day a violation occurs counts as a new violation for purposes of this subsection.
c. The civil penalty imposed under this subsection is in addition to the penalty imposed under subsection 1.  Penalties collected under this subsection shall be deposited into the general fund of the state.