[Federal Register Volume 61, Number 204 (Monday, October 21, 1996)]
[Rules and Regulations]
[Pages 54548-54549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26495]


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FEDERAL TRADE COMMISSION

16 CFR Parts 1, 305, 306, 460


Debt Collection Improvement Act of 1996

AGENCY: Federal Trade Commission (FTC).

ACTION: Final rule.

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SUMMARY: This rule implements the Debt Collection Improvement Act of 
1996 by making inflation adjustments in the dollar amounts prescribed 
for each type of violation established by the statutory civil penalty 
provisions within the FTC's jurisdiction.

EFFECTIVE DATE: November 20, 1996.

FOR FURTHER INFORMATION CONTACT:
Alex Tang, Attorney, (202) 326-2447, Office of General Counsel, FTC, 
Sixth Street & Pennsylvania Avenue, N.W., Washington, D.C. 20580.

SUPPLEMENTARY INFORMATION: This regulation implements the Debt 
Collection Improvement Act (DCIA) of 1996, Pub. L. 104-134, section 
31001(s) (Apr. 26, 1996) (amending the Federal Civil Penalties 
Inflation Adjustment Act (FCPIAA) of 1990, 28 U.S.C. 2461 note). The 
DCIA requires that the Commission publish regulations, no later than 
180 days after the enactment of the statute and at least once every 
four years thereafter, making inflation adjustments in the dollar 
amount of ``each civil monetary penalty provided by law within the 
[agency's] jurisdiction * * *.'' Pub. L. 104-134 at section 
31001(s)(1)(A) (amending FCPIAA section 4). See also FCPIAA section 
3(2) (defining ``civil monetary penalty'' as any ``penalty, fine, or 
other sanction'' for a ``specific monetary amount'' or ``maximum'' 
amount that is ``assessed or enforced'' by the agency in an 
``administrative proceeding'' or through a ``civil action'' in federal 
court).
    The DCIA requires that the adjustments be determined in accordance 
with section 5 of the FCPIAA, as amended. Section 5 provides that each 
civil penalty amount prescribed by statute is to be adjusted by a cost-
of-living increase equal to the percentage, if any, by which the U.S. 
Department of Labor's Consumer Price Index (CPI) for June of the 
calendar year preceding the adjustment exceeds the June CPI for the 
calendar year in which the civil penalty amount was ``last set or 
adjusted pursuant to law.'' FCPIAA section 5 (b). These calculations 
are based on the comprehensive CPI for all urban consumers (1913 to 
present, base year 1967). FCPIAA section 3(3) (defining CPI). The 
increase is then mathematically rounded, pursuant to section 5 (a) of 
the FCPIAA, to arrive at the final adjusted figure, which may not 
exceed 10% of the current statutory civil penalty amount in the case of 
the initial adjustment. Pub. L. 104-134 at section 31001(s)(2) 
(limitation on initial adjustment).
    Due to inflation since the civil penalty amounts in the 
Commission's statutes were ``last set or adjusted pursuant to law,'' 
the increase will, in every case, be the maximum 10% initially 
permitted under the DCIA. Id. The increases to civil penalty amounts 
specified in the FTC Act will also apply with respect to civil 
penalties authorized pursuant to the FTC Act under other laws that the 
Commission is responsible for administering or enforcing. See, e.g., 
Wool Products Labeling Act sections 6(a), 8, et al., 15 U.S.C. 68d(a), 
68f, et al.; Textile Fiber Products Identification Act sections 6, 7, 
et al., 15 U.S.C. 70d, 70e, et al.; Fair Credit Reporting Act (Consumer 
Credit Protection Act section 621), 15 U.S.C. 1681s; Equal Credit 
Opportunity Act (Consumer Credit Protection Act section 704(c)), 15 
U.S.C. 1691c(c); Petroleum Marketing Practices Act section 203(e), 15 
U.S.C. 2823(e); Telephone Disclosure and Dispute Resolution Act section 
201(c), 15 U.S.C. 5711(c); Telemarketing and Consumer Fraud and Abuse 
Prevention Act section 6(b), 15 U.S.C. 6105(b); etc.
    This regulation is being added to Part 1 of the Commission's 
existing Rules of Practice in a new Subpart L, entitled ``Civil Penalty 
Adjustments Under the Debt Collection Improvement Act of 1996.'' 
Conforming amendments are also being made to 16 CFR 1.97 and 305.4 
(Appliance Labeling penalty proceedings and Rule, respectively), to 16 
CFR 306.1 (Fuel Rating Rule), and to 16 CFR 460.1 (R-Value Rule). The 
adjustments set forth in this regulation are effective 30 days after 
publication, as noted earlier, and will apply only to violations 
occurring after the effective date. See Pub. L. 104-134 at section 
31001(s)(1)(C) (adding FCPIAA section 7).
    The Commission has no discretion in determining the amounts of the 
published adjustments. Accordingly, the Commission finds it unnecessary 
to seek public comment in this matter. See 5 U.S.C. 553(b)(B) 
(exemption from notice-and-comment rulemaking procedures under the 
Administrative Procedure Act). For that reason, the requirements of the 
Regulatory Flexibility Act also do not apply. See 5 U.S.C. 603 & 604 
(requiring initial and final analyses only where notice-and-comment is 
required by 5 U.S.C. 553, supra). In promulgating this regulation, the 
Commission has consulted the Department of Justice (DOJ) with respect 
to those FTC civil penalty statutes concurrently administered or 
enforced by DOJ.

List of Subjects

16 CFR Part 1

    Administrative practice and procedure, Penalties, Trade practices.

16 CFR Part 305

    Advertising, Energy conservation, Household appliances, Labeling, 
Penalties, Reporting and recordkeeping requirements.

16 CFR Part 306

    Gasoline, Labeling, Penalties, Reporting and recordkeeping 
requirements, Track practices.

16 CFR Part 460

    Advertising, Insulation, Labeling, Reporting and recordkeeping 
requirements, Trade practices.

    For the reasons set forth in the preamble, the Federal Trade 
Commission amends Title 16, chapter I, subchapters A, C, and D, of the 
Code of Federal Regulations, as follows:

SUBCHAPTER A--ORGANIZATION, PROCEDURES AND RULES OF PRACTICE

PART 1--GENERAL PROCEDURES

    1. The authority for Part 1 continues to read as follows:

    Authority: Sec. 6, 38 Stat. 721 (15 U.S.C. 46), unless otherwise 
noted.

    2. Section 1.97 is amended by revising the first sentence of the 
introductory text to read as follows:


Sec. 1.97   Amount of penalty.

    All penalties assessed under this subchapter shall be in the amount 
per violation as described in section 333(a) of the Energy Policy and 
Conservation Act, 42 U.S.C. 6303(a), adjusted for inflation pursuant to 
Sec. 1.98, unless the Commission otherwise directs.* * *
 * * * * *
    3. Part 1 is amended by adding a new Subpart L consisting of 
Sec. 1.98 to read as follows:

[[Page 54549]]

Subpart L--Civil Penalty Adjustments Under the Debt Collection 
Improvement Act of 1996

Sec.
1.98  Adjustment of civil monetary penalty amounts.

    Authority: Pub. L. 101-410 (28 U.S.C. 2461 note), as amended by 
sec. 31001(s), Pub. L. 104-134 (Apr. 26, 1996), 110 Stat. 3009 et 
seq.

Subpart L--Civil Penalty Adjustments Under the Debt Collection 
Improvement Act of 1996


Sec. 1.98   Adjustment of civil monetary penalty amounts.

    Effective November 20, 1996, dollar amounts specified in civil 
monetary penalty provisions within the Commission's jurisdiction are 
adjusted for inflation in accordance with paragraphs (a) through (l) of 
this section. The adjustments set forth in this section apply to 
violations occurring after November 20, 1996. The adjustments are as 
follows:
    (a) Clayton Act section 7A(g)(1), 15 U.S.C. 18a(g)(1), adjusted 
from $10,000 to $11,000 per violation;
    (b) Clayton Act section 11(l), 15 U.S.C. 21(l), adjusted from 
$5,000 to $5,500 per violation;
    (c) FTC Act section 5(l), 15 U.S.C. 45(l), adjusted from $10,000 to 
$11,000 per violation;
    (d) FTC Act section 5(m)(1)(A), 15 U.S.C. 45(m)(1)(A), adjusted 
from $10,000 to $11,000 per violation;
    (e) FTC Act section 5(m)(1)(B), 15 U.S.C. 45(m)(1)(B), adjusted 
from $10,000 to $11,000 per violation;
    (f) FTC Act section 10, 15 U.S.C. 50, adjusted from $100 to $110 
per violation;
    (g) Webb-Pomerene (Export Trade) Act section 5, 15 U.S.C. 65, 
adjusted from $100 to $110 per violation;
    (h) Wool Products Labeling Act section 6(b), 15 U.S.C. 68d(b), 
adjusted from $100 to $110 per violation;
    (i) Fur Products Labeling Act section 3(e), 15 U.S.C. 69a(e), 
adjusted from $100 to $110 per violation;
    (j) Fur Products Labeling Act section 8(d)(2), 15 U.S.C. 69f(d)(2), 
adjusted from $100 to $110 per violation;
    (k) Energy Policy and Conservation Act section 333(a), 42 U.S.C. 
6303(a), adjusted from $100 to $110 per violation; and
    (l) Civil monetary penalties authorized by reference to the Federal 
Trade Commission Act under any other provision of law within the 
jurisdiction of the Commission, adjusted in accordance with paragraphs 
(c), (d), (e) and (f) of this section, as applicable.

SUBCHAPTER C--REGULATIONS UNDER SPECIFIC ACTS OF CONGRESS

PART 305--RULE CONCERNING DISCLOSURES REGARDING ENERGY CONSUMPTION 
AND WATER USE OF CERTAIN HOME APPLIANCES AND OTHER PRODUCTS 
REQUIRED UNDER THE ENERGY POLICY AND CONSERVATION ACT (``APPLIANCE 
LABELING RULE'')

    4. The authority for Part 305 continues to read as follows:

    Authority: 42 U.S.C. 6294.

    5. Section 305.4 is amended by revising the introductory text of 
paragraph (a) and the introductory text of paragraph (b) to read as 
follows:


Sec. 305.4  Prohibited acts.

    (a) It shall be unlawful and subject to the enforcement penalties 
of section 333 of the Act, as adjusted for inflation pursuant to 
Sec. 1.98 of this chapter, for each unit of any new covered product to 
which the part applies:
* * * * *
    (b) It shall be unlawful and subject to the enforcement penalties 
of section 333 of the Act, as adjusted for inflation pursuant to 
Sec. 1.98 of this chapter, for any manufacturer or private labeler 
knowingly to:
* * * * *

PART 306--AUTOMOTIVE FUEL RATINGS, CERTIFICATION AND POSTING

    6. The authority for Part 306 continues to read as follows:

    Authority: 15 U.S.C. 2801 et seq.

    7. Section 306.1 is amended by revising the last sentence to read 
as follows:


Sec. 306.1  What this rule does.

    * * * You can be fined up to $10,000 (plus an adjustment for 
inflation, under Sec. 1.98 of this chapter each time you break a rule.

SUBCHAPTER D--TRADE REGULATION RULES

PART 460--LABELING AND ADVERTISING OF HOME INSULATION

    8. The authority for Part 460 is revised to read as follows:

    Authority: 38 Stat. 717, as amended (15 U.S.C. 41 et seq.).

    9. Section 460.1 is amended by revising the last sentence to read 
as follows:


Sec. 460.1  What this regulation does.

    * * * You can be fined heavily (up to $10,000 plus an adjustment 
for inflation, under Sec. 1.98 of this chapter each time you break a 
rule.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 96-26495 Filed 10-18-96; 8:45 am]
BILLING CODE 6750-01-M