(1) that bears a label or notice set forth in Federal law or regulation or used to identify cigarettes that are exempt from tax under the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 5704(b));

(2) that is not labeled in conformity with the Federal Cigarette Labeling and Advertising Act (Public Law 89-92, 15 U.S.C. § 1331 et seq.) or any other Federal requirement for the placement of labels, warnings and other information applicable to cigarette packages intended for domestic consumption; or

(3) the packaging of which has been modified or altered by a person other than the original manufacturer. Modification or alteration shall include the placement of a sticker, writing or mark to cover information on the packages. For purposes of this paragraph, a cigarette package shall not be construed to have been modified or altered by a person other than the manufacturer if the most recent modification or alteration was made by the manufacturer or person authorized by the manufacturer and approved by the department.