2024-00301: Adjustments to Civil Penalty Amounts

Federal Register, Volume 89 Issue 7 (Wednesday, January 10, 2024) [Federal Register Volume 89, Number 7 (Wednesday, January 10, 2024)] [Rules and Regulations] [Pages 1445-1447] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2024-00301] ======================================================================= ----------------------------------------------------------------------- FEDERAL TRADE COMMISSION 16 CFR Part 1 Adjustments to Civil Penalty Amounts

Agency

Federal Trade Commission.

Action

Final rule. -----------------------------------------------------------------------

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. [[Page 1446]]

Dates

Effective January 10, 2024.

For Further Information Contact

Marie Choi, Attorney (202-326-3368), Office of the General Counsel, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.

Supplementary Information

The Federal Civil Penalties Inflation Adjustment Act Improvements Act (``FCPIAA'') 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\ --------------------------------------------------------------------------- \1\ Public Law 114-74, 701, 129 Stat. 599 (2015). The Act amends the Federal Civil Penalties Inflation Adjustment Act, Public Law 101-410, 104 Stat. 890 (codified at 28 U.S.C. 2461 note). \2\ 81 FR 42476 (2016); 82 FR 8135 (2017); 83 FR 2902 (2018); 84 FR 3980 (2019), 85 FR 2014 (2020); 86 FR 2539 (2021); 87 FR 1070 (2022); 88 FR 1499 (2023). --------------------------------------------------------------------------- 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 2023 adjustment. The following adjusted amounts will take effect on January 10, 2024: --------------------------------------------------------------------------- \3\ 16 CFR 1.98. --------------------------------------------------------------------------- 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 $50,120 to $51,744; 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 $26,628 to $27,491; Section 5(l) of the FTC Act, 15 U.S.C. 45(l) (unfair or deceptive acts or practices)--Increase from $50,120 to $51,744; 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 $50,120 to $51,744; 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 $50,120 to $51,744; Section 10 of the FTC Act, 15 U.S.C. 50 (failure to file required reports)--Increase from $659 to $680; 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 $659 to $680; 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 $659 to $680; 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 $659 to $680; 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 $659 to $680; 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 $542 to $560; Section 525(a) of the Energy Policy and Conservation Act, 42 U.S.C. 6395(a) (recycled oil labeling violations)--Increase from $26,628 to $27,491; 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 $50,120 to $51,744; 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 $4,705 to $4,857; 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 $17,719 to $18,293; 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 $1,426,319 to $1,472,546. Calculation of Inflation Adjustments The FCPIAA, as amended, directs federal agencies to adjust each civil 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 2024 is 1.03241. 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. --------------------------------------------------------------------------- \4\ 28 U.S.C. 2461 note at (4). \5\ Id. (3), (5)(b); Office of Management and Budget, Memorandum M-24-07, Implementation of Penalty Inflation Adjustments for 2024 (December 19, 2023), available at: https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf. --------------------------------------------------------------------------- The following chart illustrates the application of these adjustments to the civil monetary penalties under the Commission's jurisdiction. Calculation of Adjustments to Maximum Civil Monetary Penalties ---------------------------------------------------------------------------------------------------------------- 2024 Penalty level Citation Description 2023 Penalty Adjustment (rounded to the level multiplier nearest dollar) ---------------------------------------------------------------------------------------------------------------- 16 CFR 1.98(a): 15 U.S.C. 18a(g)(1).. Premerger filing $50,120 1.03241 $51,744 notification violations. 16 CFR 1.98(b): 15 U.S.C. 21(l)...... Violations of cease and 26,628 1.03241 27,491 desist orders. 16 CFR 1.98(c): 15 U.S.C. 45(l)...... Unfair or deceptive acts 50,120 1.03241 51,744 or practices. 16 CFR 1.98(d): 15 U.S.C. 45(m)(1)(A) Unfair or deceptive acts 50,120 1.03241 51,744 or practices. 16 CFR 1.98(e): 15 U.S.C. 45(m)(1)(B) Unfair or deceptive acts 50,120 1.03241 51,744 or practices. 16 CFR 1.98(f): 15 U.S.C. 50......... Failure to file required 659 1.03241 680 reports. 16 CFR 1.98(g): 15 U.S.C. 65......... Failure to file required 659 1.03241 680 statements. 16 CFR 1.98(h): 15 U.S.C. 68d(b)..... Failure to maintain 659 1.03241 680 required records. 16 CFR 1.98(i): 15 U.S.C. 69a(e)..... Failure to maintain 659 1.03241 680 required records. 16 CFR 1.98(j): 15 U.S.C. 69f(d)(2).. Failure to maintain 659 1.03241 680 required records. 16 CFR 1.98(k): 42 U.S.C. 6303(a).... Knowing violations...... 542 1.03241 560 16 CFR 1.98(l): 42 U.S.C. 6395(a).... Recycled oil labeling 26,628 1.03241 27,491 violations. 16 CFR 1.98(l): 42 U.S.C. 6395(b).... Willful recycled oil 50,120 1.03241 51,744 labeling violations. [[Page 1447]] 16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2) Knowing violations...... 4,705 1.03241 4,857 16 CFR 1.98(n): 21 U.S.C. 355 note... Non-compliance with 17,719 1.03241 18,293 filing requirements. 16 CFR 1.98(o): 42 U.S.C. 17304...... Market manipulation or 1,426,319 1.03241 1,472,546 provision of false information to federal agencies. ---------------------------------------------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \6\ 28 U.S.C. 2461 note at (6). --------------------------------------------------------------------------- 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 in the 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. --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the Office of Information and Regulatory Affairs designated this rule as not a ``major rule,'' as defined by 5 U.S.C. 804(2). 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 16 CFR part 1 as follows: PART 1--GENERAL PROCEDURES Subpart L--Civil Penalty Adjustments Under the Federal Civil Penalties Inflation Adjustment Act of 1990, as Amended 0