[Federal Register Volume 86, Number 8 (Wednesday, January 13, 2021)]
[Rules and Regulations]
[Pages 2539-2541]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00483]


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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 January 13, 2021.

FOR FURTHER INFORMATION CONTACT: Kenny A. Wright, Attorney (202-326-
2907), or Marie Choi, Attorney (202-326-3368), Office of the General 
Counsel, FTC, 600 Pennsylvania Avenue NW, Washington, DC 20580.

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 (2016); 82 FR 8135 (2017); 83 FR 2902 (2018); 84 
FR 3980 (2019), 85 FR 2014 (2020).
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    Commission Rule Sec.  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 2020 adjustment. The following adjusted amounts will take 
effect on January 13, 2021:
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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 $43,280 to $43,792;
     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 $22,994 to $23,266;
     Section 5(l) of the FTC Act, 15 U.S.C. 45(l) (unfair or 
deceptive acts or practices)--Increase from $43,280 to $43,792;
     Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A) 
(unfair or

[[Page 2540]]

deceptive acts or practices)--Increase from $43,280 to $43,792;
     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 $43,280 to 
$43,792;
     Section 10 of the FTC Act, 15 U.S.C. 50 (failure to file 
required reports)--Increase from $569 to $576;
     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 $569 to $576;
     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 $569 to $576;
     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 $569 to $576;
     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 $569 to $576;
     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 $468 to $474;
     Section 525(a) of the Energy Policy and Conservation Act, 
42 U.S.C. 6395(a) (recycled oil labeling violations)--Increase from 
$22,994 to $23,266;
     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 $43,280 to $43,792;
     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 $4,063 to $4,111;
     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 $15,301 to $15,482; 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 $1,231,690 to $1,246,249.

Calculation of Inflation Adjustments

    The FCPIAA, as amended, directs Federal agencies to adjust each 
civil 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 2021 is 
1.01182. 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-21-10, Implementation of Penalty Inflation Adjustments for 2021, 
Pursuant to the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (December 23, 2020), available at: https://www.whitehouse.gov/wp-content/uploads/2020/12/M-21-10.pdf.
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    The following chart illustrates the application of these 
adjustments to the civil monetary penalties under the Commission's 
jurisdiction.

                         Calculation of Adjustments to Maximum Civil Monetary Penalties
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                                                                                                   2021 Penalty
                                                                 2020 Penalty      Adjustment     level (rounded
              Citation                      Description             level          multiplier     to the nearest
                                                                                                     dollar)
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16 CFR 1.98(a): 15 U.S.C. 18a(g)(1).  Premerger filing                 $43,280          1.01182          $43,792
                                       notification
                                       violations.
16 CFR 1.98(b): 15 U.S.C. 21(l).....  Violations of cease and           22,994          1.01182           23,266
                                       desist orders.
16 CFR 1.98(c): 15 U.S.C. 45(l).....  Unfair or deceptive               43,280          1.01182           43,792
                                       acts or practices.
16 CFR 1.98(d): 15 U.S.C.             Unfair or deceptive               43,280          1.01182           43,792
 45(m)(1)(A).                          acts or practices.
16 CFR 1.98(e): 15 U.S.C.             Unfair or deceptive               43,280          1.01182           43,792
 45(m)(1)(B).                          acts or practices.
16 CFR 1.98(f): 15 U.S.C. 50........  Failure to file                      569          1.01182              576
                                       required reports.
16 CFR 1.98(g): 15 U.S.C. 65........  Failure to file                      569          1.01182              576
                                       required statements.
16 CFR 1.98(h): 15 U.S.C. 68d(b)....  Failure to maintain                  569          1.01182              576
                                       required records.
16 CFR 1.98(i): 15 U.S.C. 69a(e)....  Failure to maintain                  569          1.01182              576
                                       required records.
16 CFR 1.98(j): 15 U.S.C. 69f(d)(2).  Failure to maintain                  569          1.01182              576
                                       required records.
16 CFR 1.98(k): 42 U.S.C. 6303(a)...  Knowing violations.....              468          1.01182              474
16 CFR 1.98(l): 42 U.S.C. 6395(a)...  Recycled oil labeling             22,994          1.01182           23,266
                                       violations.
16 CFR 1.98(l): 42 U.S.C. 6395(b)...  Willful violations.....           43,280          1.01182           43,792
16 CFR 1.98(m): 15 U.S.C.             Knowing violations.....            4,063          1.01182            4,111
 1681s(a)(2).
16 CFR 1.98(n): 21 U.S.C. 355 note..  Non-compliance with               15,301          1.01182           15,482
                                       filing requirements.
16 CFR 1.98(o): 42 U.S.C. 17304.....  Market manipulation or         1,231,690          1.01182        1,246,249
                                       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

[[Page 2541]]

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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    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).

List of Subjects in 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

Subpart L--Civil Penalty Adjustments Under the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as Amended

0
1. The authority citation for part 1, 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 January 13, 2021, including those penalties 
whose associated violation predated January 13, 2021.
    (a) Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)--
$43,792;
    (b) Section 11(l) of the Clayton Act, 15 U.S.C. 21(l)--$23,266;
    (c) Section 5(l) of the FTC Act, 15 U.S.C. 45(l)--$43,792;
    (d) Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)--
$43,792;
    (e) Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)--
$43,792;
    (f) Section 10 of the FTC Act, 15 U.S.C. 50--$576;
    (g) Section 5 of the Webb-Pomerene (Export Trade) Act, 15 U.S.C. 
65--$576;
    (h) Section 6(b) of the Wool Products Labeling Act, 15 U.SC. 
68d(b)--$576;
    (i) Section 3(e) of the Fur Products Labeling Act, 15 U.S.C. 
69a(e)--$576;
    (j) Section 8(d)(2) of the Fur Products Labeling Act, 15 U.S.C. 
69f(d)(2)--$576;
    (k) Section 333(a) of the Energy Policy and Conservation Act, 42 
U.S.C. 6303(a)--$474;
    (l) Sections 525(a) and (b) of the Energy Policy and Conservation 
Act, 42 U.S.C. 6395(a) and (b), respectively--$23,266 and $43,792, 
respectively;
    (m) Section 621(a)(2) of the Fair Credit Reporting Act, 15 U.S.C. 
1681s(a)(2)--$4,111;
    (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--$15,482;
    (o) Section 814(a) of the Energy Independence and Security Act of 
2007, 42 U.S.C. 17304--$1,246,249; 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. 2021-00483 Filed 1-12-21; 8:45 am]
BILLING CODE 6750-01-P