81_FR_42602 81 FR 42476 - Adjustment of Civil Monetary Penalty Amounts

81 FR 42476 - Adjustment of Civil Monetary Penalty Amounts

FEDERAL TRADE COMMISSION

Federal Register Volume 81, Issue 126 (June 30, 2016)

Page Range42476-42478
FR Document2016-15302

Pursuant to the Federal Civil Penalties Inflation Adjustment Act, as amended, the Federal Trade Commission (``FTC'' or ``Commission'') is increasing the maximum civil penalty amounts within its jurisdiction, as required by the Federal Civil Penalty Inflation Adjustment Act Improvements Act of 2015.

Federal Register, Volume 81 Issue 126 (Thursday, June 30, 2016) 
[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Rules and Regulations]
[Pages 42476-42478]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15302]


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FEDERAL TRADE COMMISSION

16 CFR Part 1


Adjustment of Civil Monetary Penalty Amounts

AGENCY: Federal Trade Commission.

ACTION: Interim final rule.

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SUMMARY: Pursuant to the Federal Civil Penalties Inflation Adjustment 
Act, as amended, the Federal Trade Commission (``FTC'' or 
``Commission'') is increasing the maximum civil penalty amounts within 
its jurisdiction, as required by the Federal Civil Penalty Inflation 
Adjustment Act Improvements Act of 2015.

DATES: The interim final rule is effective August 1, 2016.

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

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (``Adjustment Improvements 
Act'' or ``Act'') \1\ requires federal agencies to implement a ``catch-
up adjustment'' in 2016 to address inflation since the civil penalties 
within their jurisdiction were last set or adjusted by statute. The law 
mandates that agencies perform this adjustment through an interim final 
rulemaking and it sets forth a specific methodology to calculate the 
adjustment. Following this initial catch-up adjustment, the Adjustment 
Improvements Act directs agencies to adjust their civil penalties for 
inflation every January thereafter.
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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).
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    Commission Rule 1.98 sets forth the maximum civil penalty amounts 
for violations of laws enforced by the Commission that authorize civil 
penalties.\2\ These amounts reflect earlier adjustments under the 
Federal Civil Penalties Inflation Adjustment Act which mandated a 
different methodology than the Adjustment Improvements Act.
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    \2\ 16 CFR 1.98.
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    When the Commission seeks civil penalties, it is mindful of the 
statutory criteria courts must apply when determining the amount of the 
civil penalty: ``the degree of culpability, any history of prior such 
conduct, ability to pay, effect on ability to continue to do business, 
and such other matters as justice may require.'' \3\ Courts determining 
penalty amounts for violations of a final order under the FTC Act have 
similarly applied a multi-factor test that looks at the good or bad 
faith of the respondent; the injury to the public; the respondent's 
ability to pay; the desire to eliminate the benefits derived from the 
violations; and the necessity of vindicating the Commission's 
authority.\4\ The Commission also has a civil penalty leniency program 
for small businesses that establishes criteria the Commission will 
consider when determining the propriety of a penalty waiver or 
reduction for small businesses that are not in compliance with the 
law.\5\
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    \3\ 15 U.S.C. 45(m)(1)(C). This standard applies to penalties 
for violations of Commission rules addressing unfair or deceptive 
practices issued under section 18 of the FTC Act, and to violations 
of other statutes that provide for civil penalties by reference to 
section 18.
    \4\ United States v. Reader's Digest Ass'n, 662 F.2d 955, 967 
(3d Cir. 1981).
    \5\ 62 FR 16809 (Apr. 8, 1997), https://www.thefederalregister.org/fdsys/pkg/FR-1997-04-08/pdf/97-8941.pdf.
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    As required by the Act, the following adjusted amounts will take 
effect on August 1, 2016:
     Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1) 
(premerger filing notification violations under the Hart-Scott-Rodino 
(HSR) Improvements Act)--Increase from $16,000 to $40,000;
     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 $8,500 to $21,250;
     Section 5(l) of the FTC Act, 15 U.S.C. 45(l) (violations 
of final Commission orders issued under section 5(b) of the FTC Act)--
Increase from $16,000 to $40,000;
     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 $16,000 to 
$40,000;
     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 $16,000 to 
$40,000;
     Section 10 of the FTC Act, 15 U.S.C. 50 (failure to file 
required reports)--Increase from $210 to $525;
     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 $210 to $525;
     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 $210 to $525;
     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 $210 to $525;
     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 $210 to $525;
     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 $210 to $433;
     Section 525(a) of the Energy Policy and Conservation Act, 
42 U.S.C. 6395(a) (recycled oil labeling violations)--Increase from 
$8,500 to $21,250;

[[Page 42477]]

     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 $16,000 to $40,000;
     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 $3,500 to $3,756;
     Section 1115(a) of the Medicare Prescription Drug 
Improvement and Modernization Act of 2003, Public Law 108-173, 21 
U.S.C. 355 note (failure to comply with filing requirements)--Increase 
from $12,100 to $14,142; 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 $1,100,000 to $1,138,330.

Calculation of Inflation Adjustments

    The Adjustment Improvements Act directs federal agencies to adjust 
the civil monetary penalties under their jurisdiction for inflation 
through an initial ``catch-up'' cost-of-living adjustment. This catch-
up adjustment is defined as the percentage by which the U.S. Department 
of Labor's Consumer Price Index for all-urban consumers (``CPI-U'') for 
the month of October 2015 exceeds the CPI-U for the month of October 
for the year in which the amount of the penalty was last set or 
adjusted pursuant to law, excluding prior adjustments under FCPIAA.\6\ 
The Adjustment Improvements Act also directs that these penalty level 
adjustments should be rounded to the nearest dollar. The Act provides, 
however, that the amount of the catch-up increase for 2016 shall not 
exceed 150 percent of the amount of the civil penalty in effect on 
November 2, 2015.
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    \6\ 28 U.S.C. 2461 note (4)(b); Office of Management and Budget, 
M-16-06, Memorandum for the Heads of Executive Departments and 
Agencies, Implementation of the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (Feb. 24, 2016), available 
at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf. The OMB memorandum provides multipliers to adjust 
the penalty level based on the year the penalty was established or 
last adjusted pursuant to law.
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    Agencies do not have discretion over whether to make the initial 
catch-up adjustment for maximum civil penalty amounts absent a 
determination that the adjustment will have a negative economic impact 
or the social costs of the increase outweigh the benefits.\7\ The 
Commission has determined that there is no basis to conclude that these 
inflationary adjustments of maximum civil penalty amounts will have 
such effects. Accordingly, the Commission is making these adjustments 
as mandated.
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    \7\ Id. note (4)(c).
    \8\ Public Law 94-435, 90 Stat. 1383 (1976).
    \9\ Public Law Public Law 86-107, 73 Stat. 243 (1959).
    \10\ Public Law Public Law 93-153, 87 Stat. 591 (1973).
    \11\ Public Law Public Law 93-637, 88 Stat. 2193 (1975).
    \12\ Id.
    \13\ Public Law 63-203, 38 Stat. 717 (1914).
    \14\ Public Law 65-126, 40 Stat. 517 (1918).
    \15\ Public Law 76-850, 54 Stat. 1128 (1940).
    \16\ Public Law 82-109, 65 Stat. 176 (1951).
    \17\ Id.
    \18\ Public Law 94-163, 89 Stat. 871 (1975).
    \19\ Id.
    \20\ Id.
    \21\ Public Law 104-208, 110 Stat. 3009 (1996).
    \22\ Public Law 108-173, 117 Stat. 2066 (2003).
    \23\ Public Law 110-140, 121 Stat. 1724 (2007).

                                             Calculation of Adjustments to Maximum Civil Monetary Penalties
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                                                                                               Amount
                                                                                               after
                                                                                             adjustment
                                                               Baseline      Adjustment      multiplier    Current                             Adjusted
              Citation                     Description         penalty       multiplier      is applied    penalty       Subject to cap?       maximum
                                                                               (year)            to
                                                                                              baseline
                                                                                              penalty
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16 CFR 1.98(a) 15 U.S.C. 18a(g)(1).  Premerger filing            $10,000       \8\ 4.10774      $41,077      $16,000  Yes..................      $40,000
                                      notification                                  (1976)
                                      violations.
16 CFR 1.98(b) 15 U.S.C. 21(l).....  Violations of Clayton         5,000       \9\ 8.08973       40,449        8,500  Yes..................       21,250
                                      Act cease and desist                          (1959)
                                      orders.
16 CFR 1.98(c) 15 U.S.C. 45(l).....  Violations of FTC Act        10,000      \10\ 5.21575       52,158       16,000  Yes..................       40,000
                                      cease and desist                              (1973)
                                      orders.
16 CFR 1.98(d) 15 U.S.C.             Unfair or deceptive          10,000      \11\ 4.33220       43,322       16,000  Yes..................       40,000
 45(m)(1)(A).                         acts or practices.                            (1975)
16 CFR 1.98(e) 15 U.S.C.             Unfair or deceptive          10,000      \12\ 4.33220       43,322       16,000  Yes..................       40,000
 45(m)(1)(B).                         acts or practices.                            (1975)
16 CFR 1.98(f) 15 U.S.C. 50........  Failure to file                 100     \13\ 23.54832        2,355          210  Yes..................          525
                                      required reports.                             (1914)
1.98(g) 15 U.S.C. 65...............  Failure to file                 100     \14\ 14.86488        1,487          210  Yes..................          525
                                      required statements.                          (1918)
1.98(h) 15 U.S.C. 68d(b)...........  Failure to maintain             100     \15\ 16.98843        1,699          210  Yes..................          525
                                      required records.                             (1940)
1.98(i) 15 U.S.C. 69a(e)...........  Failure to maintain             100      \16\ 9.07779          908          210  Yes..................          525
                                      required records.                             (1951)
1.98(j) 15 U.S.C. 69f(d)(2)........  Failure to maintain             100      \17\ 9.07779          908          210  Yes..................          525
                                      required records.                             (1951)
1.98(k) 42 U.S.C. 6303(a)..........  Knowing violations....          100      \18\ 4.33220          433          210  No...................          433
                                                                                    (1975)
1.98(l) 42 U.S.C. 6395(a)..........  Recycled oil labeling         5,000      \19\ 4.33220       21,661        8,500  Yes..................       21,250
                                      violations.                                   (1975)
1.98(l) 42 U.S.C. 6395(b)..........  Willful violations....       10,000      \20\ 4.33220       43,322       16,000  Yes..................       40,000
                                                                                    (1975)
1.98(m) 15 U.S.C. 1681s(a)(2)......  Knowing violations....        2,500      \21\ 1.50245        3,756        3,500  No...................        3,756
                                                                                    (1996)
1.98(n) 21 U.S.C. 355 note.........  Non-compliance with          11,000      \22\ 1.28561       14,142       12,100  No...................       14,142
                                      filing requirements.                          (2003)
1.98(o) 42 U.S.C. 17304............  Market manipulation or    1,000,000      \23\ 1.13833    1,138,330    1,100,000  No...................    1,138,330
                                      provision of false                            (2007)
                                      information to
                                      federal agencies.
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[[Page 42478]]

Effective Dates of New Penalties

    The Adjustment Improvements Act applies to civil penalties assessed 
after the effective date of the applicable adjustment, including civil 
penalties whose associated violation predated the effective date.\24\ 
The Act does not retrospectively change previously assessed or enforced 
civil penalties.
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    \24\ Public Law 114-74, 701(b)(3) (amending section 6 of the 
FCPIAA).
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Procedural Requirements

    The Commission finds good cause for adopting this interim final 
rule without advance public notice or an opportunity for prior public 
comment. Advance opportunity for notice and comment are not required 
``when the agency for good cause finds (and incorporates the findings 
and a brief statement of reasons therefore in the rules issued) that 
notice and public procedure thereon are impracticable, unnecessary, or 
contrary to the public interest.'' 5 U.S.C. 553(b)(3)(B). The 
Adjustment Improvements Act directs agencies to promulgate the required 
inflation adjustments through an interim final rulemaking by no later 
than July 1, 2016. Pursuant to this Congressional mandate, and because 
the Commission must adjust its civil penalties according to the 
statutory formula identified in the Adjustment Improvements Act, the 
Commission finds that good cause exists to forego prior public notice 
and comment under the APA. Id. These adjustments are mandated by 
statute and do not involve the exercise of Commission discretion or any 
policy judgments. Accordingly, the Commission finds that prior public 
notice and comment is unnecessary. For this reason, the requirements of 
the Regulatory Flexibility Act (``RFA'') also do not apply.\25\ 
Finally, 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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    \25\ 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. Revise subpart L to read as follows:

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

    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 maximum civil penalty amounts apply only to 
penalties assessed after August 1, 2016, including those penalties 
whose associated violation predated August 1, 2016.
    (a) Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)--
$40,000;
    (b) Section 11(l) of the Clayton Act, 15 U.S.C. 21(l)--$21,250;
    (c) Section 5(l) of the FTC Act, 15 U.S.C. 45(l)--$40,000;
    (d) Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)--
$40,000;
    (e) Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)--
$40,000;
    (f) Section 10 of the FTC Act, 15 U.S.C. 50--$525;
    (g) Section 5 of the Webb-Pomerene (Export Trade) Act, 15 U.S.C. 
65--$525;
    (h) Section 6(b) of the Wool Products Labeling Act, 15 U.SC. 
68d(b)--$525;
    (i) Section 3(e) of the Fur Products Labeling Act, 15 U.S.C. 
69a(e)--$525;
    (j) Section 8(d)(2) of the Fur Products Labeling Act, 15 U.S.C. 
69f(d)(2)--$525;
    (k) Section 333(a) of the Energy Policy and Conservation Act, 42 
U.S.C. 6303(a)--$433;
    (l) Sections 525(a) and (b) of the Energy Policy and Conservation 
Act, 42 U.S.C. 6395(a) and (b), respectively--$21,250 and $40,000, 
respectively;
    (m) Section 621(a)(2) of the Fair Credit Reporting Act, 15 U.S.C. 
1681s(a)(2)--$3,756;
    (n) Section 1115(a) of the Medicare Prescription Drug Improvement 
and Modernization Act of 2003, Public Law 108-173, 21 U.S.C. 355 note--
$14,142;
    (o) Section 814(a) of the Energy Independence and Security Act of 
2007, 42 U.S.C. 17304--$1,138,330; 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 Tabor,
Acting Secretary.
[FR Doc. 2016-15302 Filed 6-29-16; 8:45 am]
 BILLING CODE 6750-01-P

42476 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations 1844M90G01 ...................................................................... GWN005MF GWNBK753 GWNBS077 GWNBS497 GWNBS724 GWN005MG GWNBK754 GWNBS078 GWNBS499 GWNBS794 GWN0087M GWNBK841 GWNBS079 GWNBS500 GWNBS810 GWN0087N GWNBK842 GWNBS080 GWNBS501 GWNBS811 GWN00DGK GWNBK843 GWNBS081 GWNBS502 GWNBS812 GWN00DGL GWNBK844 GWNBS157 GWNBS609 GWNBS813 GWNBJ992 GWNBK952 GWNBS158 GWNBS610 GWNBS814 GWNBK667 GWNBK953 GWNBS159 GWNBS611 GWNBS910 GWNBK674 GWNBK954 GWNBS160 GWNBS612 GWNBS911 GWNBK675 GWNBK955 GWNBS266 GWNBS613 GWNBS912 GWNBK743 GWNBK956 GWNBS267 GWNBS614 GWNBS914 GWNBK744 GWNBK957 GWNBS268 GWNBS721 GWNBS915 GWNBK751 GWNBK958 GWNBS269 GWNBS722 GWNBS982 GWNBK752 GWNBK959 GWNBS270 GWNBS723 GWNBS983 [FR Doc. C1–2016–14474 Filed 6–29–16; 8:45 am] adjust their civil penalties for inflation • Section 7A(g)(1) of the Clayton Act, BILLING CODE 1505–01–D every January thereafter. 15 U.S.C. 18a(g)(1) (premerger filing Commission Rule 1.98 sets forth the notification violations under the Hart- maximum civil penalty amounts for Scott-Rodino (HSR) Improvements violations of laws enforced by the Act)—Increase from $16,000 to $40,000; FEDERAL TRADE COMMISSION Commission that authorize civil • Section 11(l) of the Clayton Act, 15 penalties.2 These amounts reflect earlier U.S.C. 21(l) (violations of cease and 16 CFR Part 1 desist orders issued under Clayton Act adjustments under the Federal Civil Adjustment of Civil Monetary Penalty Penalties Inflation Adjustment Act section 11(b))—Increase from $8,500 to Amounts which mandated a different $21,250; • Section 5(l) of the FTC Act, 15 methodology than the Adjustment AGENCY: Federal Trade Commission. U.S.C. 45(l) (violations of final Improvements Act. ACTION: Interim final rule. Commission orders issued under section When the Commission seeks civil 5(b) of the FTC Act)—Increase from SUMMARY: Pursuant to the Federal Civil penalties, it is mindful of the statutory $16,000 to $40,000; Penalties Inflation Adjustment Act, as criteria courts must apply when • Section 5(m)(1)(A) of the FTC Act, amended, the Federal Trade determining the amount of the civil 15 U.S.C. 45(m)(1)(A) (unfair or Commission (‘‘FTC’’ or ‘‘Commission’’) penalty: ‘‘the degree of culpability, any deceptive acts or practices)—Increase is increasing the maximum civil penalty history of prior such conduct, ability to from $16,000 to $40,000; amounts within its jurisdiction, as pay, effect on ability to continue to do • Section 5(m)(1)(B) of the FTC Act, required by the Federal Civil Penalty business, and such other matters as 15 U.S.C. 45(m)(1)(B) (unfair or Inflation Adjustment Act Improvements justice may require.’’ 3 Courts deceptive acts or practices)—Increase Act of 2015. determining penalty amounts for from $16,000 to $40,000; violations of a final order under the FTC • Section 10 of the FTC Act, 15 U.S.C. DATES: The interim final rule is effective Act have similarly applied a multi- 50 (failure to file required reports)— August 1, 2016. Increase from $210 to $525; factor test that looks at the good or bad FOR FURTHER INFORMATION CONTACT: faith of the respondent; the injury to the • Section 5 of the Webb-Pomerene Kenny A. Wright, Attorney, Office of the public; the respondent’s ability to pay; (Export Trade) Act, 15 U.S.C. 65 (failure General Counsel, FTC, 600 the desire to eliminate the benefits by associations engaged solely in export Pennsylvania Avenue NW., Washington, derived from the violations; and the trade to file required statements)— DC 20580, (202) 326–2907, kwright@ necessity of vindicating the Increase from $210 to $525; ftc.gov. Commission’s authority.4 The • Section 6(b) of the Wool Products SUPPLEMENTARY INFORMATION: The Commission also has a civil penalty Labeling Act, 15 U.S.C. 68d(b) (failure Federal Civil Penalties Inflation leniency program for small businesses by wool manufacturers to maintain Adjustment Act Improvements Act of that establishes criteria the Commission required records)—Increase from $210 2015 (‘‘Adjustment Improvements Act’’ will consider when determining the to $525; propriety of a penalty waiver or • Section 3(e) of the Fur Products or ‘‘Act’’) 1 requires federal agencies to reduction for small businesses that are Labeling Act, 15 U.S.C. 69a(e)(failure to implement a ‘‘catch-up adjustment’’ in not in compliance with the law.5 maintain required records regarding fur 2016 to address inflation since the civil products)—Increase from $210 to $525; penalties within their jurisdiction were As required by the Act, the following • Section 8(d)(2) of the Fur Products last set or adjusted by statute. The law adjusted amounts will take effect on Labeling Act, 15 U.S.C. 69f(d)(2) (failure mandates that agencies perform this August 1, 2016: to maintain required records regarding adjustment through an interim final fur products)—Increase from $210 to rulemaking and it sets forth a specific 2 16CFR 1.98. $525; methodology to calculate the 3 15U.S.C. 45(m)(1)(C). This standard applies to • Section 333(a) of the Energy Policy adjustment. Following this initial catch- penalties for violations of Commission rules and Conservation Act, 42 U.S.C. 6303(a) addressing unfair or deceptive practices issued srobinson on DSK5SPTVN1PROD with RULES up adjustment, the Adjustment (knowing violations of EPCA § 332, under section 18 of the FTC Act, and to violations Improvements Act directs agencies to of other statutes that provide for civil penalties by including labeling violations)—Increase reference to section 18. from $210 to $433; • Section 525(a) of the Energy Policy 1 Public Law 114–74, sec. 701, 129 Stat. 599 4 United States v. Reader’s Digest Ass’n, 662 F.2d (2015). The Act amends the Federal Civil Penalties 955, 967 (3d Cir. 1981). Inflation Adjustment Act (‘‘FCPIAA’’), Public Law 5 62 FR 16809 (Apr. 8, 1997), https:// and Conservation Act, 42 U.S.C. 6395(a) 101–410, 104 Stat. 890 (codified at 28 U.S.C. 2461 www.gpo.gov/fdsys/pkg/FR-1997-04-08/pdf/97- (recycled oil labeling violations)— note). 8941.pdf. Increase from $8,500 to $21,250; VerDate Sep<11>2014 20:00 Jun 29, 2016 Jkt 238001 PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 E:\FR\FM\30JNR1.SGM 30JNR1

Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations 42477 • Section 525(b) of the Energy Policy federal agencies)—Increase from adjustments should be rounded to the and Conservation Act, 42 U.S.C. 6395(b) $1,100,000 to $1,138,330. nearest dollar. The Act provides, (willful violations of recycled oil however, that the amount of the catch- Calculation of Inflation Adjustments labeling requirements)—Increase from up increase for 2016 shall not exceed $16,000 to $40,000; The Adjustment Improvements Act 150 percent of the amount of the civil • Section 621(a)(2) of the Fair Credit directs federal agencies to adjust the penalty in effect on November 2, 2015. Reporting Act, 15 U.S.C. 1681s(a)(2) civil monetary penalties under their (knowing violations of the Fair Credit jurisdiction for inflation through an Agencies do not have discretion over Reporting Act)—Increase from $3,500 to initial ‘‘catch-up’’ cost-of-living whether to make the initial catch-up $3,756; adjustment. This catch-up adjustment is adjustment for maximum civil penalty • Section 1115(a) of the Medicare defined as the percentage by which the amounts absent a determination that the Prescription Drug Improvement and U.S. Department of Labor’s Consumer adjustment will have a negative Modernization Act of 2003, Public Law Price Index for all-urban consumers economic impact or the social costs of 108–173, 21 U.S.C. 355 note (failure to (‘‘CPI–U’’) for the month of October the increase outweigh the benefits.7 The comply with filing requirements)— 2015 exceeds the CPI–U for the month Commission has determined that there Increase from $12,100 to $14,142; and of October for the year in which the is no basis to conclude that these • Section 814(a) of the Energy amount of the penalty was last set or inflationary adjustments of maximum Independence and Security Act of 2007, adjusted pursuant to law, excluding civil penalty amounts will have such 42 U.S.C. 17304 (violations of prior adjustments under FCPIAA.6 The effects. Accordingly, the Commission is prohibitions on market manipulation Adjustment Improvements Act also making these adjustments as mandated. and provision of false information to directs that these penalty level CALCULATION OF ADJUSTMENTS TO MAXIMUM CIVIL MONETARY PENALTIES Amount after adjust- Adjustment ment multi- Baseline Current Subject to Adjusted Citation Description multiplier plier is ap- penalty penalty cap? maximum (year) plied to aseline penalty 16 CFR 1.98(a) 15 U.S.C. Premerger filing notification viola- $10,000 8 4.10774 (1976) $41,077 $16,000 Yes ............... $40,000 18a(g)(1). tions. 16 CFR 1.98(b) 15 U.S.C. 21(l) .. Violations of Clayton Act cease 5,000 9 8.08973 (1959) 40,449 8,500 Yes ............... 21,250 and desist orders. 16 CFR 1.98(c) 15 U.S.C. 45(l) ... Violations of FTC Act cease and 10,000 10 5.21575 52,158 16,000 Yes ............... 40,000 desist orders. (1973) 16 CFR 1.98(d) 15 U.S.C. Unfair or deceptive acts or prac- 10,000 11 4.33220 43,322 16,000 Yes ............... 40,000 45(m)(1)(A). tices. (1975) 16 CFR 1.98(e) 15 U.S.C. Unfair or deceptive acts or prac- 10,000 12 4.33220 43,322 16,000 Yes ............... 40,000 45(m)(1)(B). tices. (1975) 16 CFR 1.98(f) 15 U.S.C. 50 ....... Failure to file required reports ..... 100 13 23.54832 2,355 210 Yes ............... 525 (1914) 1.98(g) 15 U.S.C. 65 ................... Failure to file required statements 100 14 14.86488 1,487 210 Yes ............... 525 (1918) 1.98(h) 15 U.S.C. 68d(b) ............. Failure to maintain required 100 15 16.98843 1,699 210 Yes ............... 525 records. (1940) 1.98(i) 15 U.S.C. 69a(e) .............. Failure to maintain required 100 16 9.07779 908 210 Yes ............... 525 records. (1951) 1.98(j) 15 U.S.C. 69f(d)(2) ........... Failure to maintain required 100 17 9.07779 908 210 Yes ............... 525 records. (1951) 1.98(k) 42 U.S.C. 6303(a) ........... Knowing violations ....................... 100 18 4.33220 433 210 No ................. 433 (1975) 1.98(l) 42 U.S.C. 6395(a) ............ Recycled oil labeling violations ... 5,000 19 4.33220 21,661 8,500 Yes ............... 21,250 (1975) 1.98(l) 42 U.S.C. 6395(b) ............ Willful violations ........................... 10,000 20 4.33220 43,322 16,000 Yes ............... 40,000 (1975) 1.98(m) 15 U.S.C. 1681s(a)(2) .... Knowing violations ....................... 2,500 21 1.50245 3,756 3,500 No ................. 3,756 (1996) 1.98(n) 21 U.S.C. 355 note ......... Non-compliance with filing re- 11,000 22 1.28561 14,142 12,100 No ................. 14,142 quirements. (2003) 1.98(o) 42 U.S.C. 17304 ............. Market manipulation or provision 1,000,000 23 1.13833 1,138,330 1,100,000 No ................. 1,138,330 of false information to federal (2007) agencies. 6 28 U.S.C. 2461 note (4)(b); Office of 7 Id. note (4)(c). 14 Public Law 65–126, 40 Stat. 517 (1918). Management and Budget, M–16–06, Memorandum 8 PublicLaw 94–435, 90 Stat. 1383 (1976). 15 Public Law 76–850, 54 Stat. 1128 (1940). srobinson on DSK5SPTVN1PROD with RULES for the Heads of Executive Departments and 9 Public Law Public Law 86–107, 73 Stat. 243 16 Public Law 82–109, 65 Stat. 176 (1951). Agencies, Implementation of the Federal Civil (1959). 17 Id. Penalties Inflation Adjustment Act Improvements 10 Public Law Public Law 93–153, 87 Stat. 591 18 Public Law 94–163, 89 Stat. 871 (1975). Act of 2015 (Feb. 24, 2016), available at https:// (1973). 19 Id. www.whitehouse.gov/sites/default/files/omb/ 11 Public Law Public Law 93–637, 88 Stat. 2193 20 Id. memoranda/2016/m-16-06.pdf. The OMB memorandum provides multipliers to adjust the (1975). 21 Public Law 104–208, 110 Stat. 3009 (1996). 12 Id. 22 Public Law 108–173, 117 Stat. 2066 (2003). penalty level based on the year the penalty was established or last adjusted pursuant to law. 13 Public Law 63–203, 38 Stat. 717 (1914). 23 Public Law 110–140, 121 Stat. 1724 (2007). VerDate Sep<11>2014 20:00 Jun 29, 2016 Jkt 238001 PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 E:\FR\FM\30JNR1.SGM 30JNR1

42478 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations Effective Dates of New Penalties PART 1—GENERAL PROCEDURES By direction of the Commission. April Tabor, The Adjustment Improvements Act ■ 1. Revise subpart L to read as follows: Acting Secretary. applies to civil penalties assessed after [FR Doc. 2016–15302 Filed 6–29–16; 8:45 am] the effective date of the applicable Subpart L—Civil Penalty Adjustments BILLING CODE 6750–01–P adjustment, including civil penalties Under the Federal Civil Penalties whose associated violation predated the Inflation Adjustment Act of 1990, as effective date.24 The Act does not Amended retrospectively change previously DEPARTMENT OF THE INTERIOR assessed or enforced civil penalties. Authority: 28 U.S.C. 2461 note. Bureau of Indian Affairs Procedural Requirements § 1.98 Adjustment of civil monetary [167A2100DD/AAKC001030/ penalty amounts. A0A501010.999900 253G] The Commission finds good cause for This section makes inflation adopting this interim final rule without 25 CFR Parts 140, 141, 211, 213, 225, adjustments in the dollar amounts of advance public notice or an opportunity 226, 227, 243, 249 civil monetary penalties provided by for prior public comment. Advance law within the Commission’s RIN 1076–AF32 opportunity for notice and comment are jurisdiction. The following maximum not required ‘‘when the agency for good civil penalty amounts apply only to Civil Penalties Inflation Adjustments cause finds (and incorporates the penalties assessed after August 1, 2016, findings and a brief statement of reasons including those penalties whose AGENCY: Bureau of Indian Affairs, therefore in the rules issued) that notice associated violation predated August 1, Interior. and public procedure thereon are 2016. ACTION: Interim final rule. impracticable, unnecessary, or contrary (a) Section 7A(g)(1) of the Clayton to the public interest.’’ 5 U.S.C. SUMMARY: This rule adjusts the level of Act, 15 U.S.C. 18a(g)(1)—$40,000; 553(b)(3)(B). The Adjustment civil monetary penalties contained in Improvements Act directs agencies to (b) Section 11(l) of the Clayton Act, 15 Indian Affairs regulations with an initial promulgate the required inflation U.S.C. 21(l)—$21,250; ‘‘catch-up’’ adjustment under the adjustments through an interim final (c) Section 5(l) of the FTC Act, 15 Federal Civil Penalties Inflation rulemaking by no later than July 1, U.S.C. 45(l)—$40,000; Adjustment Act Improvements Act of 2016. Pursuant to this Congressional (d) Section 5(m)(1)(A) of the FTC Act, 2015 and Office of Management and mandate, and because the Commission 15 U.S.C. 45(m)(1)(A)—$40,000; Budget (OMB) guidance. must adjust its civil penalties according (e) Section 5(m)(1)(B) of the FTC Act, DATES: This rule is effective on August to the statutory formula identified in the 15 U.S.C. 45(m)(1)(B)—$40,000; 1, 2016. Comments will be accepted Adjustment Improvements Act, the (f) Section 10 of the FTC Act, 15 until August 29, 2016. Commission finds that good cause exists U.S.C. 50—$525; ADDRESSES: You may submit comments to forego prior public notice and (g) Section 5 of the Webb-Pomerene by any of the following methods: comment under the APA. Id. These (Export Trade) Act, 15 U.S.C. 65—$525; • Federal eRulemaking Portal: adjustments are mandated by statute (h) Section 6(b) of the Wool Products www.regulations.gov. Search for Docket and do not involve the exercise of Labeling Act, 15 U.SC. 68d(b)—$525; No. BIA–2016–0004 and follow the Commission discretion or any policy (i) Section 3(e) of the Fur Products instructions for submitting comments. judgments. Accordingly, the Labeling Act, 15 U.S.C. 69a(e)—$525; • Mail, Hand Delivery, or Courier: Commission finds that prior public (j) Section 8(d)(2) of the Fur Products Elizabeth Appel, Director, Office of notice and comment is unnecessary. For Labeling Act, 15 U.S.C. 69f(d)(2)—$525; Regulatory Affairs and Collaborative this reason, the requirements of the (k) Section 333(a) of the Energy Policy Action—Indian Affairs, U.S. Dept. of the Regulatory Flexibility Act (‘‘RFA’’) also and Conservation Act, 42 U.S.C. Interior, 1849 C Street NW., Mail Stop do not apply.25 Finally, this rule does 6303(a)—$433; 3642, Washington, DC 20240. not contain any collection of (l) Sections 525(a) and (b) of the FOR FURTHER INFORMATION CONTACT: information requirements as defined by Energy Policy and Conservation Act, 42 Elizabeth Appel, Director, Office of the Paperwork Reduction Act of 1995 as U.S.C. 6395(a) and (b), respectively— Regulatory Affairs and Collaborative amended. 44 U.S.C. 3501 et seq. $21,250 and $40,000, respectively; Action, Office of the Assistant List of Subjects for 16 CFR Part 1 (m) Section 621(a)(2) of the Fair Secretary—Indian Affairs; telephone Credit Reporting Act, 15 U.S.C. (202) 273–4680, elizabeth.appel@ Administrative practice and 1681s(a)(2)—$3,756; bia.gov. procedure, Penalties, Trade practices. (n) Section 1115(a) of the Medicare SUPPLEMENTARY INFORMATION: Text of Amendments Prescription Drug Improvement and I. Background Modernization Act of 2003, Public Law II. Description of Changes For the reasons set forth in the 108–173, 21 U.S.C. 355 note—$14,142; III. Procedural Requirements preamble, the Federal Trade (o) Section 814(a) of the Energy A. Regulatory Planning and Review (E.O. Commission amends Title 16, chapter I, Independence and Security Act of 2007, 12866) subchapter A, of the Code of Federal 42 U.S.C. 17304—$1,138,330; and B. Regulatory Flexibility Act srobinson on DSK5SPTVN1PROD with RULES Regulations, as follows: (p) Civil monetary penalties C. Small Business Regulatory Enforcement authorized by reference to the Federal Fairness Act D. Unfunded Mandates Reform Act 24 Public Law 114–74, 701(b)(3) (amending Trade Commission Act under any other E. Takings (E.O. 12630) section 6 of the FCPIAA). provision of law within the jurisdiction 25 A regulatory flexibility analysis under the RFA F. Federalism (E.O. 13132) is required only when an agency must publish a of the Commission—refer to the G. Civil Justice Reform (E.O. 12988) notice of proposed rulemaking for comment. See 5 amounts set forth in paragraphs (c), (d), H. Consultation with Indian Tribes (E.O. U.S.C. 603. (e) and (f) of this section, as applicable. 13175) VerDate Sep<11>2014 20:00 Jun 29, 2016 Jkt 238001 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 E:\FR\FM\30JNR1.SGM 30JNR1


Document Created: 2018-02-08 07:44:59
Document Modified: 2018-02-08 07:44:59
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule.
DatesThe interim final rule is effective August 1, 2016.
ContactKenny A. Wright, Attorney, Office of the General Counsel, FTC, 600 Pennsylvania Avenue NW., Washington, DC 20580, (202) 326-2907, [email protected]
FR Citation81 FR 42476 
CFR AssociatedAdministrative Practice and Procedure; Penalties and Trade Practices
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