Definder - what does the word mean?

What is do not remove under penalty of law?

A common phrase that is written in those little labels/tags that you find in your mattress or pillows (mostly on matresses) that you have the urge to take it off but you may think you're going to pay a huge fee or, perhaps, going to jail. As if there was a hidden super-mega-ant-bacteria size of a camera inside that tag to watch it. Some say "except by consumer" others not. But you'll remove it anyway. Besides... what's the worst thing could happen, hm?

Person 1: I just took off this tag. It says: "do not remove under penalty of law". So cool huh?
Person 2: OMG! You're going to jail!
Person 1: Nah. I'll just put it on my mom's desk.

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do not remove under penalty of law - video