[Federal Register Volume 84, Number 31 (Thursday, February 14, 2019)]
[Rules and Regulations]
[Pages 3980-3982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02237]


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FEDERAL TRADE COMMISSION

16 CFR Part 1


Adjustments to Civil Penalty Amounts

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') is 
implementing adjustments to the civil penalty amounts within its 
jurisdiction to account for inflation, as required by law.

DATES: Effective February 14, 2019.

FOR FURTHER INFORMATION CONTACT: Kenny A. Wright, Attorney (202-326-
2907), Office of the General Counsel, FTC, 600 Pennsylvania Avenue NW, 
Washington, DC 20580, [email protected].

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 \1\ directs agencies to adjust 
the civil penalty maximums under their jurisdiction for inflation every 
January. Accordingly, the Commission issues annual adjustments to the 
maximum civil penalty amounts under its jurisdiction.\2\
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    \1\ Public Law 114-74, Sec.  701, 129 Stat. 599 (2015). The Act 
amends the Federal Civil Penalties Inflation Adjustment Act 
(``FCPIAA''), Public Law 101-410, 104 Stat. 890 (codified at 28 
U.S.C. 2461 note).
    \2\ 81 FR 42476 (June 30, 2016); 82 FR 8135 (2017); 83 FR 2902 
(2018).
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    Commission Rule 1.98 sets forth the applicable civil penalty 
amounts for violations of certain laws enforced by the Commission.\3\ 
As directed by the FCPIAA, the Commission is issuing adjustments to 
increase these maximum civil penalty amounts to address inflation since 
its prior January 2018 adjustment. The following adjusted amounts will 
take effect on February 14, 2019:
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    \3\ 16 CFR 1.98.
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     Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1) 
(premerger filing notification violations under the Hart-Scott-Rodino 
Improvements Act)--Increase from $41,484 to $42,530;
     Section 11(l) of the Clayton Act, 15 U.S.C. 21(l) 
(violations of cease and desist orders issued under Clayton Act section 
11(b))--Increase from $22,039 to $22,595;
     Section 5(l) of the FTC Act, 15 U.S.C. 45(l) (unfair or 
deceptive acts or practices)--Increase from $41,484 to $42,530;
     Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A) 
(unfair or deceptive acts or practices)--Increase from $41,484 to 
$42,530;
     Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B) 
(unfair or deceptive acts or practices)--Increase from $41,484 to 
$42,530;
     Section 10 of the FTC Act, 15 U.S.C. 50 (failure to file 
required reports)--Increase from $545 to $559;
     Section 5 of the Webb-Pomerene (Export Trade) Act, 15 
U.S.C. 65 (failure by associations engaged solely in export trade to 
file required statements)--Increase from $545 to $559;
     Section 6(b) of the Wool Products Labeling Act, 15 U.S.C. 
68d(b) (failure by wool manufacturers to maintain required records)--
Increase from $545 to $559;
     Section 3(e) of the Fur Products Labeling Act, 15 U.S.C. 
69a(e) (failure to maintain required records regarding fur products)--
Increase from $545 to $559;
     Section 8(d)(2) of the Fur Products Labeling Act, 15 
U.S.C. 69f(d)(2) (failure to maintain required records regarding fur 
products)--Increase from $545 to $559;
     Section 333(a) of the Energy Policy and Conservation Act, 
42 U.S.C. 6303(a) (knowing violations of EPCA Sec.  332, including 
labeling violations)--Increase from $449 to $460;
     Section 525(a) of the Energy Policy and Conservation Act, 
42 U.S.C. 6395(a) (recycled oil labeling violations)--Increase from 
$22,039 to $22,595;
     Section 525(b) of the Energy Policy and Conservation Act, 
42 U.S.C. 6395(b) (willful violations of recycled oil labeling 
requirements)--Increase from $41,484 to $42,530;
     Section 621(a)(2) of the Fair Credit Reporting Act, 15 
U.S.C. 1681s(a)(2) (knowing violations of the Fair Credit Reporting 
Act)--Increase from $3,895 to $3,993;
     Section 1115(a) of the Medicare Prescription Drug 
Improvement and Modernization Act of 2003, Public Law 108-173, as 
amended by Public Law 115-263, 21 U.S.C. 355 note (failure to comply 
with filing requirements)--Increase from $14,666 to $15,036; and
     Section 814(a) of the Energy Independence and Security Act 
of 2007, 42 U.S.C. 17304 (violations of prohibitions on market 
manipulation and provision of false information to federal agencies)--
Increase from $1,180,566 to $1,210,340.

Calculation of Inflation Adjustments

    The FCPIAA, as amended, directs federal agencies to adjust each 
civil

[[Page 3981]]

monetary penalty under their jurisdiction for inflation in January of 
each year pursuant to a cost-of-living adjustment.\4\ The cost-of-
living adjustment is based on the percent change between the U.S. 
Department of Labor's Consumer Price Index for all-urban consumers 
(``CPI-U'') for the month of October preceding the date of the 
adjustment, and the CPI-U for October of the prior year.\5\ Based on 
that formula, the cost-of-living adjustment multiplier for 2019 is 
1.02522. The FCPIAA also directs that these penalty level adjustments 
should be rounded to the nearest dollar. Agencies do not have 
discretion over whether to adjust a maximum civil penalty, or the 
method used to determine the adjustment.
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    \4\ 28 U.S.C. 2461 note (4).
    \5\ Id. (3), (5)(b); Office of Management and Budget, Memorandum 
M-19-04, Implementation of Penalty Inflation Adjustments for 2019, 
Pursuant to the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (December 14, 2018), available at: https://www.whitehouse.gov/wp-content/uploads/2017/11/m_19_04.pdf.
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    The following chart illustrates the application of these 
adjustments to the civil monetary penalties under the Commission's 
jurisdiction.

                          Calculaton of Adjustments to Maximum Civil Monetary Penalties
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                                                                      Current       Adjustment       Adjusted
               Citation                        Description        penalty (2018)    multiplier        penalty
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16 CFR 1.98(a): 15 U.S.C. 18a(g)(1)...  Premerger filing                 $41,484         1.02522         $42,530
                                         notification violations.
16 CFR 1.98(b): 15 U.S.C. 21(l).......  Violations of cease and           22,039         1.02522          22,595
                                         desist orders.
16 CFR 1.98(c): 15 U.S.C. 45(l).......  Unfair or deceptive acts          41,484         1.02522          42,530
                                         or practices.
16 CFR 1.98(d): 15 U.S.C. 45(m)(1)(A).  Unfair or deceptive acts          41,484         1.02522          42,530
                                         or practices.
16 CFR 1.98(e): 15 U.S.C. 45(m)(1)(B).  Unfair or deceptive acts          41,484         1.02522          42,530
                                         or practices.
16 CFR 1.98(f): 15 U.S.C. 50..........  Failure to file required             545         1.02522             559
                                         reports.
16 CFR 1.98(g): 15 U.S.C. 65..........  Failure to file required             545         1.02522             559
                                         statements.
16 CFR 1.98(h): 15 U.S.C. 68d(b)......  Failure to maintain                  545         1.02522             559
                                         required records.
16 CFR 1.98(i): 15 U.S.C. 69a(e)......  Failure to maintain                  545         1.02522             559
                                         required records.
16 CFR 1.98(j): 15 U.S.C. 69f(d)(2)...  Failure to maintain                  545         1.02522             559
                                         required records.
16 CFR 1.98(k): 42 U.S.C. 6303(a).....  Knowing violations......             449         1.02522             460
16 CFR 1.98(l): 42 U.S.C. 6395(a).....  Recycled oil labeling             22,039         1.02522          22,595
                                         violations.
16 CFR 1.98(l): 42 U.S.C. 6395(b).....  Willful violations......          41,484         1.02522          42,530
16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2).  Knowing violations......           3,895         1.02522           3,993
16 CFR 1.98(n): 21 U.S.C. 355 note....  Non-compliance with               14,666         1.02522          15,036
                                         filing requirements.
16 CFR 1.98(o): 42 U.S.C. 17304.......  Market manipulation or         1,180,566         1.02522       1,210,340
                                         provision of false
                                         information to federal
                                         agencies.
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Effective Dates of New Penalties

    These new penalty levels apply to civil penalties assessed after 
the effective date of the applicable adjustment, including civil 
penalties whose associated violation predated the effective date.\6\ 
These adjustments do not retrospectively change previously assessed or 
enforced civil penalties that the FTC is actively collecting or has 
collected.
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    \6\ 28 U.S.C. 2461 note (6).
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Procedural Requirements

    The FCPIAA, as amended, directs agencies to adjust civil monetary 
penalties through rulemaking and to publish the required inflation 
adjustments in the Federal Register, notwithstanding section 553 of 
title 5, United States Code. Pursuant to this congressional mandate, 
prior public notice and comment under the APA and a delayed effective 
date are not required. For this reason, the requirements of the 
Regulatory Flexibility Act (``RFA'') also do not apply.\7\ Further, 
this rule does not contain any collection of information requirements 
as defined by the Paperwork Reduction Act of 1995 as amended. 44 U.S.C. 
3501 et seq.
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    \7\ A regulatory flexibility analysis under the RFA is required 
only when an agency must publish a notice of proposed rulemaking for 
comment. See 5 U.S.C. 603.
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List of Subjects for 16 CFR Part 1

    Administrative practice and procedure, Penalties, Trade practices.

Text of Amendments

    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

0
1. The authority citation for subpart L continues to read as follows:

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


0
2. Revise Sec.  1.98 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 provided by law within the Commission's 
jurisdiction. The following maximum civil penalty amounts apply only to 
penalties assessed after February 14, 2019, including those penalties 
whose associated violation predated February 14, 2019.
    (a) Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)--
$42,530;
    (b) Section 11(l) of the Clayton Act, 15 U.S.C. 21(l)--$22,595;
    (c) Section 5(l) of the FTC Act, 15 U.S.C. 45(l)--$42,530;
    (d) Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)--
$42,530;
    (e) Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)--
$42,530;
    (f) Section 10 of the FTC Act, 15 U.S.C. 50--$559;
    (g) Section 5 of the Webb-Pomerene (Export Trade) Act, 15 U.S.C. 
65--$559;
    (h) Section 6(b) of the Wool Products Labeling Act, 15 U.S.C. 
68d(b)--$559;
    (i) Section 3(e) of the Fur Products Labeling Act, 15 U.S.C. 
69a(e)--$559;
    (j) Section 8(d)(2) of the Fur Products Labeling Act, 15 U.S.C. 
69f(d)(2)--$559;
    (k) Section 333(a) of the Energy Policy and Conservation Act, 42 
U.S.C. 6303(a)--$460;
    (l) Sections 525(a) and (b) of the Energy Policy and Conservation 
Act, 42 U.S.C. 6395(a) and (b), respectively--$22,595 and $42,530, 
respectively;
    (m) Section 621(a)(2) of the Fair Credit Reporting Act, 15 U.S.C. 
1681s(a)(2)--$3,993;
    (n) Section 1115(a) of the Medicare Prescription Drug Improvement 
and Modernization Act of 2003, Public Law 108-173, as amended by Public 
Law 115-263, 21 U.S.C. 355 note--$15,036;

[[Page 3982]]

    (o) Section 814(a) of the Energy Independence and Security Act of 
2007, 42 U.S.C. 17304--$1,210,340; and
    (p) 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.

    By direction of the Commission.
April J. Tabor,
Acting Secretary.
[FR Doc. 2019-02237 Filed 2-13-19; 8:45 am]
 BILLING CODE 6750-01-P