[Federal Register Volume 65, Number 224 (Monday, November 20, 2000)]
[Rules and Regulations]
[Pages 69665-69666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29469]
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FEDERAL TRADE COMMISSION
16 CFR Parts 1 and 311
Federal Civil Penalties Inflation Adjustment Act of 1990, as
Amended by the Debt Collection Improvement Act of 1996
AGENCY: Federal Trade Commission (FTC).
ACTION: Final rule amendments.
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SUMMARY: The Commission is correcting certain previously published
adjustments to civil penalty amounts within its jurisdiction. These
corrections will maintain the civil penalty amounts currently published
in Commission Rule 1.98, as last adjusted in 1996. These corrections
will not affect certain related amendments intended to incorporate
previously omitted adjustments in civil penalty amounts for Recycled
Oil Rule violations.
EFFECTIVE DATE: These amendments are effective November 20, 2000.
FOR FURTHER INFORMATION CONTACT: Alex Tang, Attorney, Office of General
Counsel, FTC, 600 Pennsylvania Avenue, NW, Washington, DC 20580, (202)
326-2447, [email protected].
SUPPLEMENTARY INFORMATION: The Commission is correcting certain civil
penalty inflation adjustments, 65 FR 60857 (Oct. 13, 2000), that were
intended to update civil penalty amounts that the Commission last
adjusted for inflation in 1996 under the Federal Civil Penalties
Inflation Adjustment Act of 1990 (FCPIAA), as amended by the Debt
Collection Improvement Act of 1996 (DCIA), 28 U.S.C. 2461 note. See 61
FR 54548 (Oct. 21, 1996), 55840 (Oct. 29, 1996). Section 5 of the
FCPIAA requires, in relevant part, that any inflation ``increase''
since the last adjustment be rounded to the nearest multiple of $10
(for ``penalties less than or equal to $100''), the nearest $100 (for
``penalties greater than $100 but less than or equal to $1,000''), the
nearest $1,000 (for ``penalties greater than $1,000 but less than or
equal to $10,000''), or the nearest $5,000 (for ``penalties greater
than $10,000 but less than or equal to $100,000'').
In determining how these rounding categories apply, the Commission
had referred to the original statutory penalty amounts. For example,
for penalties under section 5 of the FTC Act, the Commission used the
rounding category ``for penalties greater than $1,000 but less than or
equal to $10,000'' (i.e., increases are rounded in multiples of
$1,000), even though section 5 penalties had been increased to $11,000
in 1996.
The rounding categories, however, do not expressly rely upon or
refer to the original statutory amounts of the penalties, nor is the
Commission aware of any legislative history to support a retroactive
reading of ``penalties'' once the original statutory penalty amount has
been increased. Rather, in calculating increases, the statute expressly
refers to the increase since the penalties were last set ``or
adjusted'' by law. See FCPIAA Sec. 5(b) (defining cost-of-living
adjustment). Thus, for example, increases in the penalty for a
violation of section 5 of the FTC Act (i.e., $11,000) must be rounded
in multiples of $5,000 (rather than multiples of $1,000, as when the
penalty was only $10,000).
[[Page 69666]]
Applying the rounding rules this way, the Commission has determined
that the relevant increase in the Consumer Price Index (CPI) since the
last adjustment in 1996 is not large enough yet to authorize the
recently published increased in the civil penalty amounts within the
Commission's jurisdiction.\1\ Accordingly, the Commission has
determined that the civil penalty amounts in Commission Rule 1.98, 16
CFR 1.98, as last adjusted in 1996, should remain unchanged for now.
This determination does not affect the previously published rule
amendments to include civil penalties for Recycled Oil Rule violations,
which were inadvertently omitted from the 1996 adjustment. The
Commission is re-publishing its final rule amendments to preserve these
conforming amendments while making the civil penalty corrections
discussed earlier.
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\1\ For adjustment purposes, inflation is determined by
calculating the percentage by which the June CPI for the calendar
year preceding the adjustment (166.2 in 1999) exceeds the June CPI
for the year when the last adjustment was made (156.7 in 1996). See
FCPIAA 5(b). Thus, the relevant inflation increase if 6.1% (not the
figure previously stated by the Commission). In any event, this
amount is not yet large enough to justify the inflation increases
authorized by the statute's rounding rules.
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These procedural amendments are exempt from the notice-and-comment
requirements of the Administrative Procedure Act. See 5 U.S.C.
553(b)(B). The requirements of the Regulatory Flexibility Act also do
not apply. See 5 U.S.C. 603, 604.
List of Subjects
16 CFR Part 1
Administrative practice and procedure, Penalties, Trade practices.
16 CFR Part 311
Energy conservation, Labeling, Recycled oil, Trade practices.
For the reasons set forth in the preamble, the Federal Trade
Commission amends Title 16, chapter I, subchapters A and C, of the Code
of Federal Regulations, as follows:
SUBCHAPTER A--ORGANIZATION, PROCEDURES AND RULES OF PRACTICE
PART 1--GENERAL PROCEDURES
1. Revise the title of subpart L to read as follows:
Subpart L--Civil Penalty Adjustments Under the Federal Civil
Penalties Inflation Adjustment Act of 1990, as Amended by the Debt
Collection Improvement Act of 1996
2. Revise the authority for subpart L to read as follows:
Authority: 28 U.S.C. 2461 note.
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 November 20, 2000:
(a) Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)--
$11,000;
(b) Section 11(1) of the Clayton Act, 15 U.S.C. 21(1)--$5,500;
(c) Section 5(1) of the FTC Act, 15 U.S.C. 45(1)--$11,000;
(d) Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)--
$11,000;
(e) Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)--
$11,000;
(f) Section 10 of the FTC Act, 15 U.S.C. 50--$110;
(g) Section 5 of the Webb-Pomerene (Export Trade) Act, 15 U.S.C.
65--$110;
(h) Section 6(b) of the Wool Products Labeling Act, 15 U.S.C.
68d(b)--$110;
(i) Section 3(e) of the Fur Products Labeling Act, 15 U.S.C.
69a(e)--$110;
(j) Section 8(d)(2) of the Fur Products Labeling Act, 15 U.S.C.
69f(d)(2)--$110;
(k) Section 333(a) of the Energy Policy and Conservation Act, 42
U.S.C. 6303(a)--$110;
((l) Sections 525(a) and (b) of the Energy Policy and Conservation
Act, 42 U.S.C. 6395(a) and (b)--$5,500 and $11,000, respectively; and
(m) 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.
SUBCHAPTER C--REGULATIONS UNDER SPECIFIC ACTS OF CONGRESS
PART 311--TEST PROCEDURES AND LABELING STANDARDS FOR RECYCLED OIL
4. The authority for part 311 continues to read as follows:
Authority: 42 U.S.C. 6363(d).
5. Amend Sec. 311.6 by revising the last sentence to read as
follows:
Sec. 311.6 3 Prohibited acts.
* * * Violations will be subject to enforcement through civil
penalties (as adjusted for inflation pursuant to Sec. 1.98 of this
chapter), imprisonment, and/or injunctive relief in accordance with the
enforcement provisions of Section 525 of the Energy Policy and
Conservation Act (42 U.S.C. 6395).
By Direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 00-29469 Filed 11-17-00; 8:45 am]
BILLING CODE 6750-01-M