[Federal Register Volume 59, Number 247 (Tuesday, December 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31807]


[[Page Unknown]]

[Federal Register: December 27, 1994]


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CONSUMER PRODUCT SAFETY COMMISSION

 

Civil Penalties; Notice of Adjusted Maximum Amounts

AGENCY: Consumer Product Safety Commission.

ACTION: Notice of adjusted maximum civil penalty amounts.

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SUMMARY: In 1990 Congress enacted statutory amendments which increased 
the maximum civil penalty amounts that could be imposed under the 
Consumer Product Safety Act, the Federal Hazardous Substances Act and 
the Flammable Fabrics Act. The amendments also provided for periodic 
adjustments to those maximum amounts. As calculated in accordance with 
the amendments, the new amounts are $6,000 for each violation, with a 
maximum of $1,500,000 for any related series of violations.

DATES: The new maximum amounts will become effective on January 26, 
1995.

FOR FURTHER INFORMATION CONTACT: Eric Stone, Acting Director, Division 
of Administrative Litigation, Office of Compliance and Enforcement, 
CPSC, Washington, D.C. 20207; telephone 301-504-0626.

SUPPLEMENTARY INFORMATION: The Consumer Product Safety Improvement Act 
of 1990 (Improvement Act), Public Law 101-608, 104 Stat. 3110 (November 
16, 1990) amended provisions of the Consumer Product Safety Act (CPSA), 
the Federal Hazardous Substances Act (FHSA) and the Flammable Fabrics 
Act (FFA). The Improvement Act added civil penalty authority to the 
FHSA and FFA, which had previously only contained criminal penalties. 
15 U.S.C. Secs. 1264(c) and 1194(e). The Improvement Act also increased 
the maximum civil penalty amounts that would apply to civil penalties 
under the CPSA: $5000 per violation and $1,250,000 for any related 
series of violations. These same maximum penalty amounts applied to the 
newly-created civil penalties under the FHSA and FFA.
    The Improvement Act further directed that the maximum civil penalty 
amounts be adjusted periodically for inflation. The CPSA, FHSA and FFA 
were amended to state:

    (A) The maximum penalty amounts authorized in paragraph (1) [the 
provision that sets the current maximum amounts of $5,000 and 
$1,250,000] shall be adjusted for inflation as provided in this 
paragraph.
    (B) Not later than December 1, 1994, and December 1 of each 
fifth calendar year thereafter, the Commission shall prescribe and 
publish in the Federal Register a schedule of maximum authorized 
penalties that shall apply for violations that occur after January 1 
of the year immediately following such publication.
    (C) The schedule of maximum authorized penalties shall be 
prescribed by increasing each of the amounts referred to in 
paragraph (1) by the cost-of-living adjustment for the preceding 
five years. Any increase determined under the preceding sentence 
shall be rounded to--
    (i) in the case of penaties greater than $1,000 but less than or 
equal to $10,000, the nearest multiple of $1,000;
    (ii) in the case of penalties greater than $10,000 but less than 
or equal to $100,000, the nearest multiple of $5,000;
    (iii) in the case of penalties greater than $100,000 but less 
than or equal to $200,000, the nearest multiple of $10,000; and
    (iv) in the case of penalties greater than $200,000, the nearest 
multiple of $25,000.
    (D) For purposes of this subsection:
    (i) The term ``Consumer Price Index'' means the Consumer Price 
Index for all-urban consumers published by the Department of Labor.
    (ii) The term ``cost-of-living adjustment for the preceding five 
years'' means the percentage by which--
    (I) the Consumer Price Index for the month of June of the 
calendar year preceding the adjustment; exceeds
    (II) the Consumer Price Index for the month of June preceding 
the date on which the maximum authorized penalty was last adjusted.

15 U.S.C. Secs. 2069(a)(3), 1264(c)(6) and 1194(e)(5).
    The Commission's Directorate for Economics has calculated that the 
cost-of-living adjustment increases the maximum civil penalty amounts 
to $5,962.93 for each violation and to $1,490,733.28 for any related 
series of violations. (The back-up information on these calculations is 
available from the Office of the Secretary.) Rounding off these numbers 
in accordance with the statutory directions, the adjusted maximum 
amounts are $6,000 for each violation and $1,500,000 for any related 
series of violations. These adjusted amounts substitute for the 
previous amounts contained in the CPSA, 15 U.S.C. Sec. 2069(a)(1); in 
the FHSA, 15 U.S.C. Sec. 1264(c)(1); and in the FFA, 15 U.S.C. 
Sec. 1194(e)(1).
    This Federal Register notice was not published before December 1, 
1994. Therefore, the Commission has decided that the new maximum 
penalty amounts should apply to violations that occur after January 26, 
1995, rather than violations that occur after January 1, 1995. This 
provides a 30-day effective date; the Improvement Act anticipated that 
the adjusted penalties would apply no earlier than one month after 
public notice in the Federal Register.

    Dated: December 20, 1994.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 94-31807 Filed 12-23-94; 8:45 am]
BILLING CODE 6355-01-P