Federal Register, Volume 82 Issue 14 (Tuesday, January 24, 2017)
[Federal Register Volume 82, Number 14 (Tuesday, January 24, 2017)]
[Rules and Regulations]
[Pages 8135-8137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01125]
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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
confirming certain amendments made on an interim final basis to the
civil penalty amounts within its jurisdiction in June 2016 and
implementing further adjustments to the civil penalty amounts within
its jurisdiction to account for inflation, as required by law.
DATES: Effective: January 24, 2017.
FOR FURTHER INFORMATION CONTACT: Kenny A. Wright, Attorney, Office of
the General Counsel, FTC, 600 Pennsylvania Avenue NW., Washington,
[[Page 8136]]
DC 20580, (202) 326-2907, kwright@ftc.gov.
SUPPLEMENTARY INFORMATION: Commission Rule 1.98 sets forth civil
penalty amounts for violations of certain laws enforced by the
Commission.\1\ As mandated by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015,\2\ the Commission adjusted the
maximum civil penalty amounts under its jurisdiction through an Interim
Final Rulemaking in June 2016.\3\ This statutorily mandated ``catch-
up'' adjustment was designed to address inflation since the civil
penalties were first enacted. This Notice confirms those amendments and
implements additional inflationary adjustments mandated by law.
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\1\ 16 CFR 1.98.
\2\ Public Law 114-74, 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).
\3\ 81 FR 42476 (June 30, 2016).
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Following the initial catch-up adjustment, the FCPIAA, as amended,
directs agencies to adjust their civil penalties for inflation every
January thereafter. Accordingly, the Commission is increasing these
maximum civil penalty amounts to address inflation since the initial
``catch-up'' adjustment. The following adjusted amounts will take
effect on January 24, 2017:
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 $40,000 to $40,654;
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 $21,250 to $21,598;
Section 5(l) of the FTC Act, 15 U.S.C. 45(l) (unfair or
deceptive acts or practices)--Increase from $40,000 to $40,654;
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 $40,000 to
$40,654;
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 $40,000 to
$40,654;
Section 10 of the FTC Act, 15 U.S.C. 50 (failure to file
required reports)--Increase from $525 to $534;
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 $525 to $534;
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 $525 to $534;
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 $525 to $534;
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 $525 to $534;
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 $433 to $440;
Section 525(a) of the Energy Policy and Conservation Act,
42 U.S.C. 6395(a) (recycled oil labeling violations)--Increase from
$21,250 to $21,598;
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 $40,000 to $40,654;
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 $3,756 to $3,817;
Section 1115(a) of the Medicare Prescription Drug
Improvement and Modernization Act of 2003, Public Law 108-173, 21
U.S.C. 355 note (failure to comply with filing requirements)--Increase
from $14,142 to $14,373; 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 $1,138,330 to $1,156,953.
Calculation of Inflation Adjustments
The FCPIAA, as amended, directs federal agencies to adjust each
civil monetary penalty under their jurisdiction for inflation no later
than January 15 of every 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
2017 is 1.01636. 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, M-17-11,
Memorandum for the Heads of Executive Departments and Agencies,
Implementation of the 2017 annual adjustment pursuant to the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015
(Dec. 16, 2016), available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
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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
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Current
Citation Description penalty Adjustment Adjusted
(2016) multiplier penalty
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16 CFR 1.98(a): 15 U.S.C. 18a(g)(1)... Premerger filing $40,000 1.01636 $40,654
notification violations.
16 CFR 1.98(b): 15 U.S.C. 21(l)....... Violations of cease and 21,250 1.01636 21,958
desist orders.
16 CFR 1.98(c): 15 U.S.C. 45(l)....... Unfair or deceptive acts 40,000 1.01636 40,654
or practices.
16 CFR 1.98(d): 15 U.S.C. 45(m)(1)(A). Unfair or deceptive acts 40,000 1.01636 40,654
or practices.
16 CFR 1.98(e): 15 U.S.C. 45(m)(1)(B). Unfair or deceptive acts 40,000 1.01636 40,654
or practices.
16 CFR 1.98(f): 15 U.S.C. 50.......... Failure to file required 525 1.01636 534
reports.
16 CFR 1.98(g): 15 U.S.C. 65.......... Failure to file required 525 1.01636 534
statements.
16 CFR 1.98(h): 15 U.S.C. 68d(b)...... Failure to maintain 525 1.01636 534
required records.
16 CFR 1.98(i): 15 U.S.C. 69a(e)...... Failure to maintain 525 1.01636 534
required records.
16 CFR 1.98(j): 15 U.S.C. 69f(d)(2)... Failure to maintain 525 1.01636 534
required records.
16 CFR 1.98(k): 42 U.S.C. 6303(a)..... Knowing violations...... 433 1.01636 440
16 CFR 1.98(l): 42 U.S.C. 6395(a)..... Recycled oil labeling 21,250 1.01636 21,598
violations.
16 CFR 1.98(l): 42 U.S.C. 6395(b)..... Willful violations...... 40,000 1.01636 40,654
[[Page 8137]]
16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2). Knowing violations...... 3,756 1.01636 3,817
16 CFR 1.98(n): 21 U.S.C. 355 note.... Non-compliance with 14,142 1.01636 14,373
filing requirements.
16 CFR 1.98(o): 42 U.S.C. 17304....... Market manipulation or 1,138,330 1.01636 1,156,953
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 publish the required
inflation adjustments in the Federal Register by no later than January
15, 2017, 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 civil penalty amounts apply to violations
occurring after January 24, 2017.
(a) Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)--
$40,654;
(b) Section 11(l) of the Clayton Act, 15 U.S.C. 21(l)--$21,598;
(c) Section 5(l) of the FTC Act, 15 U.S.C. 45(l)--$40,654;
(d) Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)--
$40,654;
(e) Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)--
$40,654;
(f) Section 10 of the FTC Act, 15 U.S.C. 50--$534;
(g) Section 5 of the Webb-Pomerene (Export Trade) Act, 15 U.S.C.
65--$534;
(h) Section 6(b) of the Wool Products Labeling Act, 15 U.SC.
68d(b)--$534;
(i) Section 3(e) of the Fur Products Labeling Act, 15 U.S.C.
69a(e)--$534;
(j) Section 8(d)(2) of the Fur Products Labeling Act, 15 U.S.C.
69f(d)(2)--$534;
(k) Section 333(a) of the Energy Policy and Conservation Act, 42
U.S.C. 6303(a)--$440;
(l) Sections 525(a) and (b) of the Energy Policy and Conservation
Act, 42 U.S.C. 6395(a) and (b), respectively--$21,598 and $40,654,
respectively;
(m) Section 621(a)(2) of the Fair Credit Reporting Act, 15 U.S.C.
1681s(a)(2)--$3,817;
(n) Section 1115(a) of the Medicare Prescription Drug Improvement
and Modernization Act of 2003, Public Law 108-173, 21 U.S.C. 355 note--
$14,373;
(o) Section 814(a) of the Energy Independence and Security Act of
2007, 42 U.S.C. 17304--$1,156,953; 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) through (f) of this section, as applicable.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2017-01125 Filed 1-23-17; 8:45 am]
BILLING CODE 6750-01-P
