82_FR_8149 82 FR 8135 - Adjustments to Civil Penalty Amounts

82 FR 8135 - Adjustments to Civil Penalty Amounts

FEDERAL TRADE COMMISSION

Federal Register Volume 82, Issue 14 (January 24, 2017)

Page Range8135-8137
FR Document2017-01125

The Federal Trade Commission (``FTC'' or ``Commission'') is confirming certain amendments made on an interim final basis to the civil penalty amounts within its jurisdiction in June 2016 and implementing further adjustments to the civil penalty amounts within its jurisdiction to account for inflation, as required by law.

Federal Register, Volume 82 Issue 14 (Tuesday, January 24, 2017)
[Federal Register Volume 82, Number 14 (Tuesday, January 24, 2017)]
[Rules and Regulations]
[Pages 8135-8137]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01125]


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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 
confirming certain amendments made on an interim final basis to the 
civil penalty amounts within its jurisdiction in June 2016 and 
implementing further adjustments to the civil penalty amounts within 
its jurisdiction to account for inflation, as required by law.

DATES: Effective: January 24, 2017.

FOR FURTHER INFORMATION CONTACT: Kenny A. Wright, Attorney, Office of 
the General Counsel, FTC, 600 Pennsylvania Avenue NW., Washington,

[[Page 8136]]

DC 20580, (202) 326-2907, kwright@ftc.gov.

SUPPLEMENTARY INFORMATION: Commission Rule 1.98 sets forth civil 
penalty amounts for violations of certain laws enforced by the 
Commission.\1\ As mandated by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015,\2\ the Commission adjusted the 
maximum civil penalty amounts under its jurisdiction through an Interim 
Final Rulemaking in June 2016.\3\ This statutorily mandated ``catch-
up'' adjustment was designed to address inflation since the civil 
penalties were first enacted. This Notice confirms those amendments and 
implements additional inflationary adjustments mandated by law.
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    \1\ 16 CFR 1.98.
    \2\ Public Law 114-74, 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).
    \3\ 81 FR 42476 (June 30, 2016).
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    Following the initial catch-up adjustment, the FCPIAA, as amended, 
directs agencies to adjust their civil penalties for inflation every 
January thereafter. Accordingly, the Commission is increasing these 
maximum civil penalty amounts to address inflation since the initial 
``catch-up'' adjustment. The following adjusted amounts will take 
effect on January 24, 2017:
     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 $40,000 to $40,654;
     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 $21,250 to $21,598;
     Section 5(l) of the FTC Act, 15 U.S.C. 45(l) (unfair or 
deceptive acts or practices)--Increase from $40,000 to $40,654;
     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 $40,000 to 
$40,654;
     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 $40,000 to 
$40,654;
     Section 10 of the FTC Act, 15 U.S.C. 50 (failure to file 
required reports)--Increase from $525 to $534;
     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 $525 to $534;
     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 $525 to $534;
     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 $525 to $534;
     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 $525 to $534;
     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 $433 to $440;
     Section 525(a) of the Energy Policy and Conservation Act, 
42 U.S.C. 6395(a) (recycled oil labeling violations)--Increase from 
$21,250 to $21,598;
     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 $40,000 to $40,654;
     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 $3,756 to $3,817;
     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 $14,142 to $14,373; 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 $1,138,330 to $1,156,953.

Calculation of Inflation Adjustments

    The FCPIAA, as amended, directs federal agencies to adjust each 
civil monetary penalty under their jurisdiction for inflation no later 
than January 15 of every 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 
2017 is 1.01636. 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, M-17-11, 
Memorandum for the Heads of Executive Departments and Agencies, 
Implementation of the 2017 annual adjustment pursuant to the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 
(Dec. 16, 2016), available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.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
----------------------------------------------------------------------------------------------------------------
                                                                      Current
               Citation                        Description            penalty       Adjustment       Adjusted
                                                                      (2016)        multiplier        penalty
----------------------------------------------------------------------------------------------------------------
16 CFR 1.98(a): 15 U.S.C. 18a(g)(1)...  Premerger filing                 $40,000         1.01636         $40,654
                                         notification violations.
16 CFR 1.98(b): 15 U.S.C. 21(l).......  Violations of cease and           21,250         1.01636          21,958
                                         desist orders.
16 CFR 1.98(c): 15 U.S.C. 45(l).......  Unfair or deceptive acts          40,000         1.01636          40,654
                                         or practices.
16 CFR 1.98(d): 15 U.S.C. 45(m)(1)(A).  Unfair or deceptive acts          40,000         1.01636          40,654
                                         or practices.
16 CFR 1.98(e): 15 U.S.C. 45(m)(1)(B).  Unfair or deceptive acts          40,000         1.01636          40,654
                                         or practices.
16 CFR 1.98(f): 15 U.S.C. 50..........  Failure to file required             525         1.01636             534
                                         reports.
16 CFR 1.98(g): 15 U.S.C. 65..........  Failure to file required             525         1.01636             534
                                         statements.
16 CFR 1.98(h): 15 U.S.C. 68d(b)......  Failure to maintain                  525         1.01636             534
                                         required records.
16 CFR 1.98(i): 15 U.S.C. 69a(e)......  Failure to maintain                  525         1.01636             534
                                         required records.
16 CFR 1.98(j): 15 U.S.C. 69f(d)(2)...  Failure to maintain                  525         1.01636             534
                                         required records.
16 CFR 1.98(k): 42 U.S.C. 6303(a).....  Knowing violations......             433         1.01636             440
16 CFR 1.98(l): 42 U.S.C. 6395(a).....  Recycled oil labeling             21,250         1.01636          21,598
                                         violations.
16 CFR 1.98(l): 42 U.S.C. 6395(b).....  Willful violations......          40,000         1.01636          40,654

[[Page 8137]]

 
16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2).  Knowing violations......           3,756         1.01636           3,817
16 CFR 1.98(n): 21 U.S.C. 355 note....  Non-compliance with               14,142         1.01636          14,373
                                         filing requirements.
16 CFR 1.98(o): 42 U.S.C. 17304.......  Market manipulation or         1,138,330         1.01636       1,156,953
                                         provision of false
                                         information to federal
                                         agencies.
----------------------------------------------------------------------------------------------------------------

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).
---------------------------------------------------------------------------

Procedural Requirements

    The FCPIAA, as amended, directs agencies to publish the required 
inflation adjustments in the Federal Register by no later than January 
15, 2017, 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.
---------------------------------------------------------------------------

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 civil penalty amounts apply to violations 
occurring after January 24, 2017.
    (a) Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)--
$40,654;
    (b) Section 11(l) of the Clayton Act, 15 U.S.C. 21(l)--$21,598;
    (c) Section 5(l) of the FTC Act, 15 U.S.C. 45(l)--$40,654;
    (d) Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)--
$40,654;
    (e) Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)--
$40,654;
    (f) Section 10 of the FTC Act, 15 U.S.C. 50--$534;
    (g) Section 5 of the Webb-Pomerene (Export Trade) Act, 15 U.S.C. 
65--$534;
    (h) Section 6(b) of the Wool Products Labeling Act, 15 U.SC. 
68d(b)--$534;
    (i) Section 3(e) of the Fur Products Labeling Act, 15 U.S.C. 
69a(e)--$534;
    (j) Section 8(d)(2) of the Fur Products Labeling Act, 15 U.S.C. 
69f(d)(2)--$534;
    (k) Section 333(a) of the Energy Policy and Conservation Act, 42 
U.S.C. 6303(a)--$440;
    (l) Sections 525(a) and (b) of the Energy Policy and Conservation 
Act, 42 U.S.C. 6395(a) and (b), respectively--$21,598 and $40,654, 
respectively;
    (m) Section 621(a)(2) of the Fair Credit Reporting Act, 15 U.S.C. 
1681s(a)(2)--$3,817;
    (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--
$14,373;
    (o) Section 814(a) of the Energy Independence and Security Act of 
2007, 42 U.S.C. 17304--$1,156,953; 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) through (f) of this section, as applicable.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2017-01125 Filed 1-23-17; 8:45 am]
 BILLING CODE 6750-01-P



                                                                Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations                                                8135

                                              the Administrative Procedure Act, 5                     List of Subjects                                       PART 13—PROGRAM FRAUD CIVIL
                                              U.S.C 553(b), to publish a general notice                                                                      REMEDIES
                                                                                                      10 CFR Part 2
                                              of proposed rulemaking. 5 U.S.C. 604.
                                              As discussed in this notice under                         Administrative practice and                          ■ 3. The authority citation for part 13
                                              Section III, ‘‘Rulemaking Procedure,’’                  procedure, Antitrust, Byproduct                        continues to read as follows:
                                              the NRC has determined that this final                  material, Classified information,                         Authority: 31 U.S.C. 3801 through 3812;
                                              rule is exempt from the requirements of                 Confidential business information,                     44 U.S.C. 3504 note. Section 13.3 also issued
                                              5 U.S.C. 553(b) and that notice and                     Freedom of information, Environmental                  under 28 U.S.C. 2461 note. Section 13.13 also
                                              comment need not be provided.                           protection, Hazardous waste, Nuclear                   issued under 31 U.S.C. 3730.
                                              Accordingly, the NRC also determines                    energy, Nuclear materials, Nuclear                     ■ 4. Amend § 13.3 by revising
                                              that the requirements of the Regulatory                 power plants and reactors, Penalties,                  paragraphs (a)(1)(iv) and (b)(1)(ii) to
                                              Flexibility Act do not apply to this final              Reporting and recordkeeping                            read as follows:
                                              rule.                                                   requirements, Sex discrimination,
                                                                                                      Source material, Special nuclear                       § 13.3 Basis for civil penalties and
                                              VII. Backfitting and Issue Finality                     material, Waste treatment and disposal.                assessments.
                                                                                                                                                               (a) * * *
                                                The NRC has not prepared a backfit                    10 CFR Part 13                                           (1) * * *
                                              analysis for this final rule. This final                  Administrative practice and                            (iv) Is for payment for the provision
                                              rule does not involve any provision that                procedure, Claims, Fraud, Organization                 of property or services which the person
                                              would impose a backfit, nor is it                       and function (government agencies),                    has not provided as claimed, shall be
                                              inconsistent with any issue finality                    Penalties.                                             subject, in addition to any other remedy
                                              provision, as those terms are defined in                  For the reasons set out in the                       that may be prescribed by law, to a civil
                                              10 CFR chapter I. As mandated by                        preamble and under the authority of the                penalty of not more than $10,957 for
                                              Congress, this final rule adjusts CMP                   Atomic Energy Act of 1954, as amended;                 each such claim.
                                              amounts for violations of already-                      the Energy Reorganization Act of 1974,                 *      *     *    *     *
                                              existing NRC regulations and                            as amended; 28 U.S.C. 2461 note; and 5                   (b) * * *
                                              requirements. This final rule does not                  U.S.C. 552 and 553, the NRC is adopting                  (1) * * *
                                              modify any licensee system, structures,                 the following amendments to 10 CFR                       (ii) Contains or is accompanied by an
                                              components, designs, approvals, or                      parts 2 and 13.                                        express certification or affirmation of
                                              procedures required for the construction                                                                       the truthfulness and accuracy of the
                                              or operation of any facility.                           PART 2—AGENCY RULES OF                                 contents of the statement, shall be
                                                                                                      PRACTICE AND PROCEDURE                                 subject, in addition to any other remedy
                                              VIII. Plain Writing                                                                                            that may be prescribed by law, to a civil
                                                                                                      ■ 1. The authority citation for part 2                 penalty of not more than $10,957 for
                                                The Plain Writing Act of 2010 (Pub.                   continues to read as follows:
                                              L. 111–274) requires Federal agencies to                                                                       each such statement.
                                              write documents in a clear, concise, and                  Authority: Atomic Energy Act of 1954,                *      *     *    *     *
                                                                                                      secs. 29, 53, 62, 63, 81, 102, 103, 104, 105,
                                              well-organized manner. The NRC has                      161, 181, 182, 183, 184, 186, 189, 191, 234              Dated in Rockville, Maryland, this 9th day
                                              written this document to be consistent                  (42 U.S.C. 2039, 2073, 2092, 2093, 2111,               of January, 2017.
                                              with the Plain Writing Act as well as the               2132, 2133, 2134, 2135, 2201, 2231, 2232,                For the Nuclear Regulatory Commission.
                                              Presidential Memorandum, ‘‘Plain                        2233, 2234, 2236, 2239, 2241, 2282); Energy            Victor M. McCree,
                                              Language in Government Writing,’’                       Reorganization Act of 1974, secs. 201, 206             Executive Director for Operations.
                                              published June 10, 1998 (63 FR 31883).                  (42 U.S.C. 5841, 5846); Nuclear Waste Policy
                                                                                                      Act of 1982, secs. 114(f), 134, 135, 141 (42           [FR Doc. 2017–01313 Filed 1–23–17; 8:45 am]
                                              IX. National Environmental Policy Act                   U.S.C. 10134(f), 10154, 10155, 10161);                 BILLING CODE 7590–01–P
                                                                                                      Administrative Procedure Act (5 U.S.C. 552,
                                                 The NRC has determined that this                     553, 554, 557, 558); National Environmental
                                              final rule is the type of action described              Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C.         FEDERAL TRADE COMMISSION
                                              as a categorical exclusion in 10 CFR                    3504 note.
                                              51.22(c)(1). Therefore, neither an                        Section 2.205(j) also issued under 28                16 CFR Part 1
                                              environmental impact statement nor an                   U.S.C. 2461 note.
                                              environmental assessment has been                       ■ 2. Amend § 2.205 by revising                         Adjustments to Civil Penalty Amounts
                                              prepared for this final rule.                           paragraph (j) to read as follows:
                                                                                                                                                             AGENCY:    Federal Trade Commission.
                                              X. Paperwork Reduction Statement                        § 2.205    Civil penalties.                            ACTION:   Final rule.
                                                                                                      *      *    *     *     *
                                                 This final rule does not contain a                      (j) Amount. A civil monetary penalty                SUMMARY:  The Federal Trade
                                              collection of information as defined in                 imposed under Section 234 of the                       Commission (‘‘FTC’’ or ‘‘Commission’’)
                                              the Paperwork Reduction Act of 1995                     Atomic Energy Act of 1954, as amended,                 is confirming certain amendments made
                                              (44 U.S.C. 3501 et seq.) and, therefore,                or any other statute within the                        on an interim final basis to the civil
                                              is not subject to the requirements of the               jurisdiction of the Commission that                    penalty amounts within its jurisdiction
                                              Paperwork Reduction Act of 1995.                        provides for the imposition of a civil                 in June 2016 and implementing further
                                                                                                      penalty in an amount equal to the                      adjustments to the civil penalty
                                              XI. Congressional Review Act
sradovich on DSK3GMQ082PROD with RULES




                                                                                                      amount set forth in Section 234, may                   amounts within its jurisdiction to
                                                 This final rule is a rule as defined in              not exceed $285,057 for each violation.                account for inflation, as required by law.
                                              the Congressional Review Act (5 U.S.C.                  If any violation is a continuing one,                  DATES: Effective: January 24, 2017.
                                              801–808). However, the Office of                        each day of such violation shall                       FOR FURTHER INFORMATION CONTACT:
                                              Management and Budget has not found                     constitute a separate violation for the                Kenny A. Wright, Attorney, Office of the
                                              it to be a major rule as defined in the                 purposes of computing the applicable                   General Counsel, FTC, 600
                                              Congressional Review Act.                               civil penalty.                                         Pennsylvania Avenue NW., Washington,


                                         VerDate Sep<11>2014   17:47 Jan 23, 2017   Jkt 241001   PO 00000   Frm 00005   Fmt 4700   Sfmt 4700   E:\FR\FM\24JAR1.SGM   24JAR1


                                              8136                 Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations

                                              DC 20580, (202) 326–2907, kwright@                            deceptive acts or practices)—Increase                              Reporting Act)—Increase from $3,756 to
                                              ftc.gov.                                                      from $40,000 to $40,654;                                           $3,817;
                                              SUPPLEMENTARY INFORMATION:                                       • Section 5(m)(1)(B) of the FTC Act,                              • Section 1115(a) of the Medicare
                                              Commission Rule 1.98 sets forth civil                         15 U.S.C. 45(m)(1)(B) (unfair or                                   Prescription Drug Improvement and
                                              penalty amounts for violations of certain                     deceptive acts or practices)—Increase                              Modernization Act of 2003, Public Law
                                              laws enforced by the Commission.1 As                          from $40,000 to $40,654;                                           108–173, 21 U.S.C. 355 note (failure to
                                              mandated by the Federal Civil Penalties                          • Section 10 of the FTC Act, 15 U.S.C.
                                                                                                                                                                               comply with filing requirements)—
                                              Inflation Adjustment Act Improvements                         50 (failure to file required reports)—
                                                                                                                                                                               Increase from $14,142 to $14,373; and
                                              Act of 2015,2 the Commission adjusted                         Increase from $525 to $534;
                                                                                                               • Section 5 of the Webb-Pomerene                                  • Section 814(a) of the Energy
                                              the maximum civil penalty amounts
                                                                                                            (Export Trade) Act, 15 U.S.C. 65 (failure                          Independence and Security Act of 2007,
                                              under its jurisdiction through an Interim
                                                                                                            by associations engaged solely in export                           42 U.S.C. 17304 (violations of
                                              Final Rulemaking in June 2016.3 This
                                                                                                            trade to file required statements)—                                prohibitions on market manipulation
                                              statutorily mandated ‘‘catch-up’’
                                                                                                            Increase from $525 to $534;                                        and provision of false information to
                                              adjustment was designed to address
                                              inflation since the civil penalties were                         • Section 6(b) of the Wool Products                             federal agencies)—Increase from
                                              first enacted. This Notice confirms those                     Labeling Act, 15 U.S.C. 68d(b) (failure                            $1,138,330 to $1,156,953.
                                              amendments and implements additional                          by wool manufacturers to maintain
                                                                                                                                                                               Calculation of Inflation Adjustments
                                              inflationary adjustments mandated by                          required records)—Increase from $525
                                              law.                                                          to $534;                                                              The FCPIAA, as amended, directs
                                                 Following the initial catch-up                                • Section 3(e) of the Fur Products                              federal agencies to adjust each civil
                                              adjustment, the FCPIAA, as amended,                           Labeling Act, 15 U.S.C. 69a(e) (failure to                         monetary penalty under their
                                              directs agencies to adjust their civil                        maintain required records regarding fur                            jurisdiction for inflation no later than
                                              penalties for inflation every January                         products)—Increase from $525 to $534;                              January 15 of every year pursuant to a
                                              thereafter. Accordingly, the Commission                          • Section 8(d)(2) of the Fur Products                           cost-of-living adjustment.4 The cost-of-
                                              is increasing these maximum civil                             Labeling Act, 15 U.S.C. 69f(d)(2) (failure                         living adjustment is based on the
                                              penalty amounts to address inflation                          to maintain required records regarding                             percent change between the U.S.
                                              since the initial ‘‘catch-up’’ adjustment.                    fur products)—Increase from $525 to                                Department of Labor’s Consumer Price
                                              The following adjusted amounts will                           $534;                                                              Index for all-urban consumers (‘‘CPI–
                                              take effect on January 24, 2017:                                 • Section 333(a) of the Energy Policy
                                                                                                                                                                               U’’) for the month of October preceding
                                                 • Section 7A(g)(1) of the Clayton Act,                     and Conservation Act, 42 U.S.C. 6303(a)
                                                                                                                                                                               the date of the adjustment, and the CPI–
                                              15 U.S.C. 18a(g)(1) (premerger filing                         (knowing violations of EPCA § 332,
                                                                                                                                                                               U for October of the prior year.5 Based
                                              notification violations under the Hart-                       including labeling violations)—Increase
                                                                                                                                                                               on that formula, the cost-of-living
                                              Scott-Rodino Improvements Act)—                               from $433 to $440;
                                                                                                                                                                               adjustment multiplier for 2017 is
                                              Increase from $40,000 to $40,654;                                • Section 525(a) of the Energy Policy
                                                                                                                                                                               1.01636. The FCPIAA also directs that
                                                 • Section 11(l) of the Clayton Act, 15                     and Conservation Act, 42 U.S.C. 6395(a)
                                                                                                                                                                               these penalty level adjustments should
                                              U.S.C. 21(l) (violations of cease and                         (recycled oil labeling violations)—
                                                                                                            Increase from $21,250 to $21,598;                                  be rounded to the nearest dollar.
                                              desist orders issued under Clayton Act
                                                                                                               • Section 525(b) of the Energy Policy                           Agencies do not have discretion over
                                              section 11(b))—Increase from $21,250 to
                                                                                                            and Conservation Act, 42 U.S.C. 6395(b)                            whether to adjust a maximum civil
                                              $21,598;
                                                 • Section 5(l) of the FTC Act, 15                          (willful violations of recycled oil                                penalty, or the method used to
                                              U.S.C. 45(l) (unfair or deceptive acts or                     labeling requirements)—Increase from                               determine the adjustment.
                                              practices)—Increase from $40,000 to                           $40,000 to $40,654;                                                   The following chart illustrates the
                                              $40,654;                                                         • Section 621(a)(2) of the Fair Credit                          application of these adjustments to the
                                                 • Section 5(m)(1)(A) of the FTC Act,                       Reporting Act, 15 U.S.C. 1681s(a)(2)                               civil monetary penalties under the
                                              15 U.S.C. 45(m)(1)(A) (unfair or                              (knowing violations of the Fair Credit                             Commission’s jurisdiction.

                                                                                  CALCULATION OF ADJUSTMENTS TO MAXIMUM CIVIL MONETARY PENALTIES
                                                                                                                                                                                Current         Adjustment           Adjusted
                                                                      Citation                                                     Description                                  penalty          multiplier           penalty
                                                                                                                                                                                (2016)

                                              16   CFR   1.98(a): 15 U.S.C. 18a(g)(1) .............        Premerger filing notification violations ...........                    $40,000            1.01636            $40,654
                                              16   CFR   1.98(b): 15 U.S.C. 21(l) .....................    Violations of cease and desist orders ............                       21,250            1.01636             21,958
                                              16   CFR   1.98(c): 15 U.S.C. 45(l) .....................    Unfair or deceptive acts or practices .............                      40,000            1.01636             40,654
                                              16   CFR   1.98(d): 15 U.S.C. 45(m)(1)(A) .........          Unfair or deceptive acts or practices .............                      40,000            1.01636             40,654
                                              16   CFR   1.98(e): 15 U.S.C. 45(m)(1)(B) .........          Unfair or deceptive acts or practices .............                      40,000            1.01636             40,654
                                              16   CFR   1.98(f): 15 U.S.C. 50 .........................   Failure to file required reports ........................                   525            1.01636                534
                                              16   CFR   1.98(g): 15 U.S.C. 65 ........................    Failure to file required statements .................                       525            1.01636                534
                                              16   CFR   1.98(h): 15 U.S.C. 68d(b) .................       Failure to maintain required records ..............                         525            1.01636                534
                                              16   CFR   1.98(i): 15 U.S.C. 69a(e) ...................     Failure to maintain required records ..............                         525            1.01636                534
                                              16   CFR   1.98(j): 15 U.S.C. 69f(d)(2) ...............      Failure to maintain required records ..............                         525            1.01636                534
                                              16   CFR   1.98(k): 42 U.S.C. 6303(a) ................       Knowing violations .........................................                433            1.01636                440
                                              16   CFR   1.98(l): 42 U.S.C. 6395(a) .................      Recycled oil labeling violations ......................                  21,250            1.01636             21,598
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                                              16   CFR   1.98(l): 42 U.S.C. 6395(b) .................      Willful violations ..............................................        40,000            1.01636             40,654

                                                1 16 CFR 1.98.                                                 3 81 FR 42476 (June 30, 2016).                                  2017 annual adjustment pursuant to the Federal
                                                2 Public Law 114–74, 701, 129 Stat. 599 (2015).                4 28                                                            Civil Penalties Inflation Adjustment Act
                                                                                                                    U.S.C. 2461 note (4).
                                              The Act amends the Federal Civil Penalties                      5 Id. (3), (5)(b); Office of Management and Budget,              Improvements Act of 2015 (Dec. 16, 2016), available
                                              Inflation Adjustment Act (‘‘FCPIAA’’), Public Law                                                                                at https://www.whitehouse.gov/sites/default/files/
                                                                                                            M–17–11, Memorandum for the Heads of Executive
                                              101–410, 104 Stat. 890 (codified at 28 U.S.C. 2461                                                                               omb/memoranda/2017/m-17-11_0.pdf.
                                              note).                                                        Departments and Agencies, Implementation of the




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                                                                 Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations                                                           8137

                                                                     CALCULATION OF ADJUSTMENTS TO MAXIMUM CIVIL MONETARY PENALTIES—Continued
                                                                                                                                                                    Current             Adjustment          Adjusted
                                                                    Citation                                               Description                              penalty              multiplier          penalty
                                                                                                                                                                    (2016)

                                              16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2) ........         Knowing violations .........................................        3,756               1.01636              3,817
                                              16 CFR 1.98(n): 21 U.S.C. 355 note ..............      Non-compliance with filing requirements .......                    14,142               1.01636             14,373
                                              16 CFR 1.98(o): 42 U.S.C. 17304 ..................     Market manipulation or provision of false in-                   1,138,330               1.01636          1,156,953
                                                                                                       formation to federal agencies.



                                              Effective Dates of New Penalties                        civil monetary penalties provided by                          DEPARTMENT OF ENERGY
                                                 These new penalty levels apply to                    law within the Commission’s
                                              civil penalties assessed after the                      jurisdiction. The following civil penalty                     Federal Energy Regulatory
                                              effective date of the applicable                        amounts apply to violations occurring                         Commission
                                              adjustment, including civil penalties                   after January 24, 2017.
                                              whose associated violation predated the                    (a) Section 7A(g)(1) of the Clayton                        18 CFR Parts 250 and 385
                                              effective date.6 These adjustments do                   Act, 15 U.S.C. 18a(g)(1)—$40,654;                             [Docket No. RM17–9–000; Order No. 834]
                                              not retrospectively change previously                      (b) Section 11(l) of the Clayton Act, 15
                                              assessed or enforced civil penalties that               U.S.C. 21(l)—$21,598;                                         Civil Monetary Penalty Inflation
                                              the FTC is actively collecting or has                      (c) Section 5(l) of the FTC Act, 15                        Adjustments
                                              collected.                                              U.S.C. 45(l)—$40,654;                                         AGENCY:  Federal Energy Regulatory
                                              Procedural Requirements                                    (d) Section 5(m)(1)(A) of the FTC Act,                     Commission, Department of Energy.
                                                                                                      15 U.S.C. 45(m)(1)(A)—$40,654;                                ACTION: Final rule.
                                                 The FCPIAA, as amended, directs
                                                                                                         (e) Section 5(m)(1)(B) of the FTC Act,
                                              agencies to publish the required
                                                                                                      15 U.S.C. 45(m)(1)(B)—$40,654;                                SUMMARY:   The Federal Energy
                                              inflation adjustments in the Federal
                                                                                                         (f) Section 10 of the FTC Act, 15                          Regulatory Commission (Commission) is
                                              Register by no later than January 15,
                                                                                                      U.S.C. 50—$534;                                               issuing a final rule to amend its
                                              2017, notwithstanding section 553 of
                                                                                                         (g) Section 5 of the Webb-Pomerene                         regulations governing the maximum
                                              title 5, United States Code. Pursuant to
                                                                                                      (Export Trade) Act, 15 U.S.C. 65—$534;                        civil monetary penalties assessable for
                                              this congressional mandate, prior public
                                                                                                                                                                    violations of statutes, rules, and orders
                                              notice and comment under the APA and                       (h) Section 6(b) of the Wool Products
                                                                                                                                                                    within the Commission’s jurisdiction.
                                              a delayed effective date are not required.              Labeling Act, 15 U.SC. 68d(b)—$534;
                                                                                                                                                                    The Federal Civil Penalties Inflation
                                              For this reason, the requirements of the                   (i) Section 3(e) of the Fur Products                       Adjustment Act of 1990, as amended
                                              Regulatory Flexibility Act (‘‘RFA’’) also               Labeling Act, 15 U.S.C. 69a(e)—$534;                          most recently by the Federal Civil
                                              do not apply.7 Further, this rule does                     (j) Section 8(d)(2) of the Fur Products                    Penalties Inflation Adjustment Act
                                              not contain any collection of                           Labeling Act, 15 U.S.C. 69f(d)(2)—$534;                       Improvements Act of 2015, requires the
                                              information requirements as defined by                     (k) Section 333(a) of the Energy Policy                    Commission to issue this final rule.
                                              the Paperwork Reduction Act of 1995 as                  and Conservation Act, 42 U.S.C.
                                              amended. 44 U.S.C. 3501 et seq.                                                                                       DATES: This final rule is effective
                                                                                                      6303(a)—$440;                                                 January 24, 2017.
                                              List of Subjects for 16 CFR Part 1                         (l) Sections 525(a) and (b) of the                         FOR FURTHER INFORMATION CONTACT:
                                                Administrative practice and                           Energy Policy and Conservation Act, 42                        Todd Hettenbach, Attorney, Office of
                                              procedure, Penalties, Trade practices.                  U.S.C. 6395(a) and (b), respectively—                         Enforcement, Federal Energy Regulatory
                                                                                                      $21,598 and $40,654, respectively;                            Commission, 888 First Street NE.,
                                              Text of Amendments                                         (m) Section 621(a)(2) of the Fair                          Washington, DC 20426, (202) 502–8794,
                                                For the reasons set forth in the                      Credit Reporting Act, 15 U.S.C.                               Todd.Hettenbach@ferc.gov.
                                              preamble, the Federal Trade                             1681s(a)(2)—$3,817;                                           SUPPLEMENTARY INFORMATION:
                                              Commission amends Title 16, chapter I,                     (n) Section 1115(a) of the Medicare
                                              subchapter A, of the Code of Federal                    Prescription Drug Improvement and                             Order No. 834
                                              Regulations, as follows:                                Modernization Act of 2003, Public Law                         Final Rule
                                                                                                      108–173, 21 U.S.C. 355 note—$14,373;
                                              PART 1—GENERAL PROCEDURES                                  (o) Section 814(a) of the Energy                           (Issued January 9, 2017)
                                              ■ 1. The authority citation for subpart L               Independence and Security Act of 2007,                          1. In this final rule, the Federal
                                              continues to read as follows:                           42 U.S.C. 17304—$1,156,953; and                               Energy Regulatory Commission
                                                                                                         (p) Civil monetary penalties                               (Commission) is complying with its
                                                  Authority: 28 U.S.C. 2461 note.                                                                                   statutory obligation to amend the civil
                                                                                                      authorized by reference to the Federal
                                              ■   2. Revise § 1.98 to read as follows:                Trade Commission Act under any other                          monetary penalties provided by law for
                                                                                                      provision of law within the jurisdiction                      matters within the agency’s jurisdiction.
                                              § 1.98 Adjustment of civil monetary
                                              penalty amounts.                                        of the Commission—refer to the                                I. Background
                                                                                                      amounts set forth in paragraphs (c)
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                                                This section makes inflation                                                                                          2. The Federal Civil Penalties
                                              adjustments in the dollar amounts of                    through (f) of this section, as applicable.
                                                                                                                                                                    Inflation Adjustment Act Improvements
                                                                                                        By direction of the Commission.
                                                                                                                                                                    Act of 2015 (2015 Adjustment Act),1
                                                  6 28U.S.C. 2461 note (6).                           Donald S. Clark,                                              which further amended the Federal
                                                 7 A regulatory flexibility analysis under the RFA
                                                                                                      Secretary.                                                    Civil Penalties Inflation Adjustment Act
                                              is required only when an agency must publish a
                                              notice of proposed rulemaking for comment. See 5        [FR Doc. 2017–01125 Filed 1–23–17; 8:45 am]
                                              U.S.C. 603.                                             BILLING CODE 6750–01–P                                         1 Sec.   701, Public Law 114–74, 129 Stat. 584, 599.



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Document Created: 2018-02-01 15:12:26
Document Modified: 2018-02-01 15:12:26
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
ActionFinal rule.
DatesEffective: January 24, 2017.
ContactKenny A. Wright, Attorney, Office of the General Counsel, FTC, 600 Pennsylvania Avenue NW., Washington, DC 20580, (202) 326-2907, [email protected]
FR Citation82 FR 8135 
CFR AssociatedAdministrative Practice and Procedure; Penalties and Trade Practices

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