Adjustments to Civil Penalty Amounts
| Published date | 14 February 2019 |
| Citation | 84 FR 3980 |
| Record Number | 2019-02237 |
| Section | Rules and Regulations |
| Court | Federal Trade Commission |
Federal Register, Volume 84 Issue 31 (Thursday, February 14, 2019)
[Federal Register Volume 84, Number 31 (Thursday, February 14, 2019)]
[Rules and Regulations]
[Pages 3980-3982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02237]
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FEDERAL TRADE COMMISSION
16 CFR Part 1
Adjustments to Civil Penalty Amounts
AGENCY: Federal Trade Commission.
ACTION: Final rule.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') is
implementing adjustments to the civil penalty amounts within its
jurisdiction to account for inflation, as required by law.
DATES: Effective February 14, 2019.
FOR FURTHER INFORMATION CONTACT: Kenny A. Wright, Attorney (202-326-
2907), Office of the General Counsel, FTC, 600 Pennsylvania Avenue NW,
Washington, DC 20580, kwright@ftc.gov.
SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 \1\ directs agencies to adjust
the civil penalty maximums under their jurisdiction for inflation every
January. Accordingly, the Commission issues annual adjustments to the
maximum civil penalty amounts under its jurisdiction.\2\
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\1\ Public Law 114-74, Sec. 701, 129 Stat. 599 (2015). The Act
amends the Federal Civil Penalties Inflation Adjustment Act
(``FCPIAA''), Public Law 101-410, 104 Stat. 890 (codified at 28
U.S.C. 2461 note).
\2\ 81 FR 42476 (June 30, 2016); 82 FR 8135 (2017); 83 FR 2902
(2018).
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Commission Rule 1.98 sets forth the applicable civil penalty
amounts for violations of certain laws enforced by the Commission.\3\
As directed by the FCPIAA, the Commission is issuing adjustments to
increase these maximum civil penalty amounts to address inflation since
its prior January 2018 adjustment. The following adjusted amounts will
take effect on February 14, 2019:
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\3\ 16 CFR 1.98.
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Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)
(premerger filing notification violations under the Hart-Scott-Rodino
Improvements Act)--Increase from $41,484 to $42,530;
Section 11(l) of the Clayton Act, 15 U.S.C. 21(l)
(violations of cease and desist orders issued under Clayton Act section
11(b))--Increase from $22,039 to $22,595;
Section 5(l) of the FTC Act, 15 U.S.C. 45(l) (unfair or
deceptive acts or practices)--Increase from $41,484 to $42,530;
Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)
(unfair or deceptive acts or practices)--Increase from $41,484 to
$42,530;
Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)
(unfair or deceptive acts or practices)--Increase from $41,484 to
$42,530;
Section 10 of the FTC Act, 15 U.S.C. 50 (failure to file
required reports)--Increase from $545 to $559;
Section 5 of the Webb-Pomerene (Export Trade) Act, 15
U.S.C. 65 (failure by associations engaged solely in export trade to
file required statements)--Increase from $545 to $559;
Section 6(b) of the Wool Products Labeling Act, 15 U.S.C.
68d(b) (failure by wool manufacturers to maintain required records)--
Increase from $545 to $559;
Section 3(e) of the Fur Products Labeling Act, 15 U.S.C.
69a(e) (failure to maintain required records regarding fur products)--
Increase from $545 to $559;
Section 8(d)(2) of the Fur Products Labeling Act, 15
U.S.C. 69f(d)(2) (failure to maintain required records regarding fur
products)--Increase from $545 to $559;
Section 333(a) of the Energy Policy and Conservation Act,
42 U.S.C. 6303(a) (knowing violations of EPCA Sec. 332, including
labeling violations)--Increase from $449 to $460;
Section 525(a) of the Energy Policy and Conservation Act,
42 U.S.C. 6395(a) (recycled oil labeling violations)--Increase from
$22,039 to $22,595;
Section 525(b) of the Energy Policy and Conservation Act,
42 U.S.C. 6395(b) (willful violations of recycled oil labeling
requirements)--Increase from $41,484 to $42,530;
Section 621(a)(2) of the Fair Credit Reporting Act, 15
U.S.C. 1681s(a)(2) (knowing violations of the Fair Credit Reporting
Act)--Increase from $3,895 to $3,993;
Section 1115(a) of the Medicare Prescription Drug
Improvement and Modernization Act of 2003, Public Law 108-173, as
amended by Public Law 115-263, 21 U.S.C. 355 note (failure to comply
with filing requirements)--Increase from $14,666 to $15,036; and
Section 814(a) of the Energy Independence and Security Act
of 2007, 42 U.S.C. 17304 (violations of prohibitions on market
manipulation and provision of false information to federal agencies)--
Increase from $1,180,566 to $1,210,340.
Calculation of Inflation Adjustments
The FCPIAA, as amended, directs federal agencies to adjust each
civil
[[Page 3981]]
monetary penalty under their jurisdiction for inflation in January of
each year pursuant to a cost-of-living adjustment.\4\ The cost-of-
living adjustment is based on the percent change between the U.S.
Department of Labor's Consumer Price Index for all-urban consumers
(``CPI-U'') for the month of October preceding the date of the
adjustment, and the CPI-U for October of the prior year.\5\ Based on
that formula, the cost-of-living adjustment multiplier for 2019 is
1.02522. The FCPIAA also directs that these penalty level adjustments
should be rounded to the nearest dollar. Agencies do not have
discretion over whether to adjust a maximum civil penalty, or the
method used to determine the adjustment.
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\4\ 28 U.S.C. 2461 note (4).
\5\ Id. (3), (5)(b); Office of Management and Budget, Memorandum
M-19-04, Implementation of Penalty Inflation Adjustments for 2019,
Pursuant to the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (December 14, 2018), available at: https://www.whitehouse.gov/wp-content/uploads/2017/11/m_19_04.pdf.
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The following chart illustrates the application of these
adjustments to the civil monetary penalties under the Commission's
jurisdiction.
Calculaton of Adjustments to Maximum Civil Monetary Penalties
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Current Adjustment Adjusted
Citation Description penalty (2018) multiplier penalty
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16 CFR 1.98(a): 15 U.S.C. 18a(g)(1)... Premerger filing $41,484 1.02522 $42,530
notification violations.
16 CFR 1.98(b): 15 U.S.C. 21(l)....... Violations of cease and 22,039 1.02522 22,595
desist orders.
16 CFR 1.98(c): 15 U.S.C. 45(l)....... Unfair or deceptive acts 41,484 1.02522 42,530
or practices.
16 CFR 1.98(d): 15 U.S.C. 45(m)(1)(A). Unfair or deceptive acts 41,484 1.02522 42,530
or practices.
16 CFR 1.98(e): 15 U.S.C. 45(m)(1)(B). Unfair or deceptive acts 41,484 1.02522 42,530
or practices.
16 CFR 1.98(f): 15 U.S.C. 50.......... Failure to file required 545 1.02522 559
reports.
16 CFR 1.98(g): 15 U.S.C. 65.......... Failure to file required 545 1.02522 559
statements.
16 CFR 1.98(h): 15 U.S.C. 68d(b)...... Failure to maintain 545 1.02522 559
required records.
16 CFR 1.98(i): 15 U.S.C. 69a(e)...... Failure to maintain 545 1.02522 559
required records.
16 CFR 1.98(j): 15 U.S.C. 69f(d)(2)... Failure to maintain 545 1.02522 559
required records.
16 CFR 1.98(k): 42 U.S.C. 6303(a)..... Knowing violations...... 449 1.02522 460
16 CFR 1.98(l): 42 U.S.C. 6395(a)..... Recycled oil labeling 22,039 1.02522 22,595
violations.
16 CFR 1.98(l): 42 U.S.C. 6395(b)..... Willful violations...... 41,484 1.02522 42,530
16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2). Knowing violations...... 3,895 1.02522 3,993
16 CFR 1.98(n): 21 U.S.C. 355 note.... Non-compliance with 14,666 1.02522 15,036
filing requirements.
16 CFR 1.98(o): 42 U.S.C. 17304....... Market manipulation or 1,180,566 1.02522 1,210,340
provision of false
information to federal
agencies.
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Effective Dates of New Penalties
These new penalty levels apply to civil penalties assessed after
the effective date of the applicable adjustment, including civil
penalties whose associated violation predated the effective date.\6\
These adjustments do not retrospectively change previously assessed or
enforced civil penalties that the FTC is actively collecting or has
collected.
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\6\ 28 U.S.C. 2461 note (6).
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Procedural Requirements
The FCPIAA, as amended, directs agencies to adjust civil monetary
penalties through rulemaking and to publish the required inflation
adjustments in the Federal Register, notwithstanding section 553 of
title 5, United States Code. Pursuant to this congressional mandate,
prior public notice and comment under the APA and a delayed effective
date are not required. For this reason, the requirements of the
Regulatory Flexibility Act (``RFA'') also do not apply.\7\ Further,
this rule does not contain any collection of information requirements
as defined by the Paperwork Reduction Act of 1995 as amended. 44 U.S.C.
3501 et seq.
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\7\ A regulatory flexibility analysis under the RFA is required
only when an agency must publish a notice of proposed rulemaking for
comment. See 5 U.S.C. 603.
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List of Subjects for 16 CFR Part 1
Administrative practice and procedure, Penalties, Trade practices.
Text of Amendments
For the reasons set forth in the preamble, the Federal Trade
Commission amends title 16, chapter I, subchapter A, of the Code of
Federal Regulations, as follows:
PART 1--GENERAL PROCEDURES
0
1. The authority citation for subpart L continues to read as follows:
Authority: 28 U.S.C. 2461 note.
0
2. Revise Sec. 1.98 to read as follows:
Sec. 1.98 Adjustment of civil monetary penalty amounts.
This section makes inflation adjustments in the dollar amounts of
civil monetary penalties provided by law within the Commission's
jurisdiction. The following maximum civil penalty amounts apply only to
penalties assessed after February 14, 2019, including those penalties
whose associated violation predated February 14, 2019.
(a) Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)--
$42,530;
(b) Section 11(l) of the Clayton Act, 15 U.S.C. 21(l)--$22,595;
(c) Section 5(l) of the FTC Act, 15 U.S.C. 45(l)--$42,530;
(d) Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)--
$42,530;
(e) Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)--
$42,530;
(f) Section 10 of the FTC Act, 15 U.S.C. 50--$559;
(g) Section 5 of the Webb-Pomerene (Export Trade) Act, 15 U.S.C.
65--$559;
(h) Section 6(b) of the Wool Products Labeling Act, 15 U.S.C.
68d(b)--$559;
(i) Section 3(e) of the Fur Products Labeling Act, 15 U.S.C.
69a(e)--$559;
(j) Section 8(d)(2) of the Fur Products Labeling Act, 15 U.S.C.
69f(d)(2)--$559;
(k) Section 333(a) of the Energy Policy and Conservation Act, 42
U.S.C. 6303(a)--$460;
(l) Sections 525(a) and (b) of the Energy Policy and Conservation
Act, 42 U.S.C. 6395(a) and (b), respectively--$22,595 and $42,530,
respectively;
(m) Section 621(a)(2) of the Fair Credit Reporting Act, 15 U.S.C.
1681s(a)(2)--$3,993;
(n) Section 1115(a) of the Medicare Prescription Drug Improvement
and Modernization Act of 2003, Public Law 108-173, as amended by Public
Law 115-263, 21 U.S.C. 355 note--$15,036;
[[Page 3982]]
(o) Section 814(a) of the Energy Independence and Security Act of
2007, 42 U.S.C. 17304--$1,210,340; and
(p) Civil monetary penalties authorized by reference to the Federal
Trade Commission Act under any other provision of law within the
jurisdiction of the Commission--refer to the amounts set forth in
paragraphs (c), (d), (e) and (f) of this section, as applicable.
By direction of the Commission.
April J. Tabor,
Acting Secretary.
[FR Doc. 2019-02237 Filed 2-13-19; 8:45 am]
BILLING CODE 6750-01-P
