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AGENCY:Federal Trade Commission. ACTION:Final rule. SUMMARY:The Federal Trade Commission (“FTC” or “Commission”) is implementing adjustments to the civil penalty amounts within its jurisdiction to account for inflation, as required by law. DATES:Effective January 10, 2022. Start Further Info FOR FURTHER INFORMATION CONTACT:Marie Choi, Attorney (202-326-3368), Office of the General Counsel, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. End Further Info End Preamble SUPPLEMENTARY INFORMATION:The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 [1] directs agencies to adjust the civil penalty maximums under their jurisdiction for inflation every January. Accordingly, the Commission issues annual adjustments to the maximum civil penalty amounts under its jurisdiction.[2] Commission Rule 1.98 sets forth the applicable civil penalty amounts for violations of certain laws enforced by the Commission.[3] As directed by the FCPIAA, the Commission is issuing adjustments to increase these maximum civil penalty amounts to address inflation since its prior 2021 adjustment. The following adjusted amounts will take effect on January 10, 2022:
• 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 $23,266 to $24,714; • Section 5( l ) of the FTC Act, 15 U.S.C. 45( l ) (unfair or deceptive acts or practices)—Increase from $43,792 to $46,517;
Calculation of Inflation AdjustmentsThe FCPIAA, as amended, directs federal agencies to adjust each civil monetary penalty under their jurisdiction for inflation in January of each year pursuant to a cost-of-living adjustment.[4] The cost-of-living Start Printed Page 1071 adjustment is based on the percent change between the U.S. Department of Labor's Consumer Price Index for all-urban consumers (“CPI-U”) for the month of October preceding the date of the adjustment, and the CPI-U for October of the prior year.[5] Based on that formula, the cost-of-living adjustment multiplier for 2021 is 1.06222. 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. 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
Effective Dates of New PenaltiesThese 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. Procedural RequirementsThe FCPIAA, as amended, directs agencies to adjust civil monetary penalties through rulemaking and to publish the required inflation adjustments in the Federal Register , notwithstanding section 553 of title 5, United States Code. Pursuant to this congressional mandate, prior public notice and comment under the APA and a delayed effective date are not required. For this reason, the requirements of the Regulatory Flexibility Act (“RFA”) also do not apply.[7] Further, this rule does not contain any collection of information requirements as defined by the Paperwork Reduction Act of 1995 as amended. 44 U.S.C. 3501 et seq. Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq. ), the Office of Information and Regulatory Affairs designated this rule as not a “major rule,” as defined by 5 U.S.C. 804(2). Start List of Subjects List of Subjects for 16 CFR Part 1
End List of Subjects Text of AmendmentsFor 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: Start Part PART 1—GENERAL PROCEDURESSubpart L—Civil Penalty Adjustments Under the Federal Civil Penalties Inflation Adjustment Act of 1990, as AmendedEnd Part Start Amendment Part 1. The authority citation for subpart L continues to read as follows: End Amendment Part 28 U.S.C. 2461 note. End Authority Start Amendment Part 2. Revise § 1.98 to read as follows: End Amendment Part Adjustment of civil monetary penalty amounts. This section makes inflation adjustments in the dollar amounts of civil monetary penalties provided by law within the Commission's jurisdiction. The following maximum civil penalty amounts apply only to penalties assessed after January 10, 2022, including those penalties whose associated violation predated January 10, 2022. (a) Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)—$46,517; (b) Section 11( l ) of the Clayton Act, 15 U.S.C. 21( l )—$24,714; (c) Section 5( l ) of the FTC Act, 15 U.S.C. 45( l )—$46,517; (d) Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)—$46,517; (e) Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)—$46,517; (f) Section 10 of the FTC Act, 15 U.S.C. 50—$612; (g) Section 5 of the Webb-Pomerene (Export Trade) Act, 15 U.S.C. 65—$612; (h) Section 6(b) of the Wool Products Labeling Act, 15 U.SC. 68d(b)—$612; (i) Section 3(e) of the Fur Products Labeling Act, 15 U.S.C. 69a(e)—$612; (j) Section 8(d)(2) of the Fur Products Labeling Act, 15 U.S.C. 69f(d)(2)—$612; Start Printed Page 1072 (k) Section 333(a) of the Energy Policy and Conservation Act, 42 U.S.C. 6303(a)—$503; (l) Sections 525(a) and (b) of the Energy Policy and Conservation Act, 42 U.S.C. 6395(a) and (b), respectively—$24,714 and $46,517, respectively; (m) Section 621(a)(2) of the Fair Credit Reporting Act, 15 U.S.C. 1681s(a)(2)—$4,367; (n) Section 1115(a) of the Medicare Prescription Drug Improvement and Modernization Act of 2003, Public Law 108-173, as amended by Public Law 115-263, 21 U.S.C. 355 note—$16,445; (o) Section 814(a) of the Energy Independence and Security Act of 2007, 42 U.S.C. 17304—$1,323,791; 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. Start Signature By direction of the Commission. April Tabor, Secretary. End Signature |