[Federal Register Volume 69, Number 245 (Wednesday, December 22, 2004)]
[Rules and Regulations]
[Pages 76611-76612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27980]


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FEDERAL TRADE COMMISSION

16 CFR Part 1


Federal Civil Penalties Inflation Adjustment Act

AGENCY: Federal Trade Commission (FTC).

ACTION: Final rule amendments.

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SUMMARY: The FTC is making adjustments to certain civil penalty amounts 
within its jurisdiction, as required by law. These adjustments reflect 
inflation since the penalty amounts were last adjusted.

EFFECTIVE DATE: January 21, 2005.

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: As required at least once every four years 
by the Federal Civil Penalties Inflation Adjustment Act of 1990, 28 
U.S.C. 2461 note, as amended by the Debt Collection Improvement Act of 
1996, Pub. L. 104-134, Sec.  31001, 110 Stat. 1321-373, the FTC is 
making certain regulatory adjustments to civil penalty amounts within 
its jurisdiction. The civil penalty amounts adjusted by the FTC are set 
forth in Commission Rule 1.98, 16 CFR 1.98. The FTC published the 
original adjustments in 1996. See 61 FR 54548 (Oct. 21, 1996), 55840 
(Oct. 29, 1996). No adjustments were warranted under the law in 2000. 
See 65 FR 69665 (Nov. 20, 2000).
    Adjustments are based on the increase in the Consumer Price Index 
(CPI) between June of the year in which the prior adjustment was made 
and June of the year preceding the year in which the adjustment is 
being made. Thus, for the relevant period between June 1996 and

[[Page 76612]]

June 2003, the CPI has increased from 156.7 to 183.7, or 17.2%. 
Applying this percentage increase to currently adjusted civil penalty 
amounts, the FTC is adjusting civil penalty amounts currently set at 
$5,500 under two statutes: Clayton Act Sec.  11(l), for violations of 
cease-and-desist orders issued under Sec.  11(b) of that Act; and Sec.  
525(a) of the Energy Policy and Conservation Act, for recycled oil 
labeling violations. Each will be adjusted to $6,500, in accordance 
with the rounding rules of the adjustment statute, and the FTC is 
amending paragraphs (b) and (l) of Rule 1.98 to reflect these 
adjustments, which will become effective thirty days following 
publication. The FTC is thus deleting the second sentence of the Rule's 
introductory text, regarding the prior effective date, which is 
potentially confusing and, in any event, superfluous.
    The statute's rounding rules do not authorize the FTC at this time 
to increase the amounts of the other civil penalties within its 
jurisdiction. Increases in civil penalties of greater than $10,000 and 
less than or equal to $100,000 must be in $5,000 increments, and the 
increase in the CPI was not high enough to round up any adjustment to 
$5,000. Likewise, increases in civil penalties of greater than $100 and 
less than or equal to $1,000 must be in $100 increments, and the 
increase in the CPI was not high enough to round up any adjustment to 
$100. Accordingly, all other paragraphs of Rule 1.98 remain unchanged.
    Likewise, the FTC is not adding any new adjustments to the rule for 
other statutory civil penalty amounts that have been enacted since the 
last adjustments, such as Sec.  621(a)(2) of the Fair Credit Reporting 
Act, 15 U.S.C. 1681s, or Sec.  1115(a) of the Medicare Act, Pub. L. 
108-173. These authorities are too recent to warrant adjustments for 
inflation.
    In light of the ministerial nature of the adjustments, the public 
comment requirements of the Administrative Procedure Act (APA) do not 
apply to this action. 5 U.S.C. 553(b)(B) (exception when public comment 
is unnecessary). For this reason, the requirements of the Regulatory 
Flexibility Act also do not apply. 5 U.S.C. 603, 604 (no regulatory 
flexibility analyses required where the APA does not require public 
comment).

List of Subjects for 16 CFR Part 1

    Administrative practice and procedure, Penalties, Trade practices.


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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

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

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1. The authority citation for subpart L continues to read as follows:

    Authority: 28 U.S.C. 2461 note.


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2. Revise the introductory text of Sec.  1.98 and paragraphs (b) and 
(l) 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 within the Commission's jurisdiction.
* * * * *
    (b) Section 11(l) of the Clayton Act, 15 U.S.C. 21(l)--$6,500;
* * * * *
    (l) Sections 525(a) and (b) of the Energy Policy and Conservation 
Act, 42 U.S.C. 6395(a) and (b), respectively--$6,500 and $11,000, 
respectively; and
* * * * *

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 04-27980 Filed 12-21-04; 8:45 am]
BILLING CODE 6750-01-P