[Federal Register Volume 69, Number 227 (Friday, November 26, 2004)]
[Notices]
[Pages 68884-68885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26088]


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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 that provided 
for periodic adjustments to the maximum civil penalty amounts 
authorized under

[[Page 68885]]

the Consumer Product Safety Act, the Federal Hazardous Substances Act, 
and the Flammable Fabrics Act. As calculated in accordance with the 
amendments, the new amounts are $8,000 for each violation and 
$1,825,000 for any related series of violations.

DATES: The new amounts will become effective on January 1, 2005.

FOR FURTHER INFORMATION CONTACT: Leonard H. Goldstein, Attorney, Office 
of the General Counsel, CPSC, Washington, DC 20207; telephone (301) 
504-7635; e-mail [email protected].

SUPPLEMENTARY INFORMATION: The Consumer Product Safety Improvements Act 
of 1990 (Improvements Act), Pub. L. 101-608, 104 Stat. 3110 (November 
16, 1990), amended the Consumer Product Safety Act (CPSA), the Federal 
Hazardous Substances Act (FHSA), and the Flammable Fabrics Act (FFA). 
First, the Improvements Act added civil penalty authority to the FHSA 
and FFA, which previously contained only criminal penalties. 15 U.S.C. 
1264(c) and 1194(e). Second, the Improvements Act increased the maximum 
civil penalty amounts applicable to civil penalties under the CPSA, and 
set the same maximum amounts for the newly-created FHSA and FFA civil 
penalties. 15 U.S.C. 2069(a), 1264(c)(1), and 1194(e)(1).
    Third, the Improvements Act directed the Commission to adjust the 
maximum civil penalty amounts periodically for inflation:
    (A) The maximum penalty amounts authorized in paragraph (1) 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 penalties 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. 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 $7,737 for each violation and to $1,823,736 for any related series 
of violations. Rounding off these numbers in accordance with the 
statutory directions, the adjusted maximum amounts are $8,000 for each 
violation and $1,825,000 for any related series of violations.
    These new amounts will apply to violations that occur after January 
1, 2005.

    Dated: November 19, 2004.
Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
[FR Doc. 04-26088 Filed 11-24-04; 8:45 am]
BILLING CODE 6355-01-P