1-14-2020 Federal Register (fine increase)

2014

Federal Register / Vol. 85, No. 9 / Tuesday, January 14, 2020 / Rules and Regulations

Office of Management and Budget under
the Paperwork Reduction Act.23
D. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Bureau
will submit a report containing this rule
and other required information to the
United States Senate, the United States
House of Representatives, and the
Comptroller General of the United
States prior to the rule taking effect. The
Office of Information and Regulatory
Affairs (OIRA) has designated this rule
as not a ‘‘major rule’’ as defined by 5
U.S.C. 804(2).

List of Subjects in 12 CFR Part 1083
Administrative practice and
procedure, Consumer protection,
Penalties.
Authority and Issuance
For the reasons set forth in the
preamble, the Bureau amends 12 CFR
part 1083 as set forth below:
PART 1083—CIVIL PENALTY
ADJUSTMENTS
1. The authority citation for part 1083
continues to read as follows:

■

Authority: 12 U.S.C. 2609(d); 12 U.S.C.
5113(d)(2); 12 U.S.C. 5565(c); 15 U.S.C.
1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461
note.

Law

12
12
12
15
15
12
12
12
12
15
15

U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.

5565(c)(2)(A) ...........................................................
5565(c)(2)(B) ...........................................................
5565(c)(2)(C) ..........................................................
1717a(a)(2) .............................................................
1717a(a)(2) .............................................................
2609(d)(1) ...............................................................
2609(d)(1) ...............................................................
2609(d)(2)(A) ..........................................................
5113(d)(2) ...............................................................
1639e(k)(1) .............................................................
1639e(k)(2) .............................................................

Dated: January 8, 2020.
Thomas Pahl,
Policy Associate Director, Bureau of
Consumer Financial Protection.
BILLING CODE 4810–AM–P

FEDERAL TRADE COMMISSION
16 CFR Part 1
Adjustments to Civil Penalty Amounts
Federal Trade Commission.
Final rule.

AGENCY:

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 14, 2020.

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SUMMARY:

23 44

U.S.C. 3501–3521.
Law 114–74, sec. 701, 129 Stat. 599
(2015). The Act amends the Federal Civil Penalties
1 Public

16:28 Jan 13, 2020

(a) The maximum amount of each
civil penalty within the jurisdiction of
the Consumer Financial Protection
Bureau to impose is adjusted in
accordance with the Federal Civil
Penalties Inflation Adjustment Act of
1990, as amended by the Debt
Collection Improvement Act of 1996
and further amended by the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (28 U.S.C.
2461 note), as follows:
Adjusted
maximum
civil penalty
amount

Jkt 250001

Tier 1 penalty ..........................................................................
Tier 2 penalty ..........................................................................
Tier 3 penalty ..........................................................................
Per violation .............................................................................
Annual cap ..............................................................................
Per failure ................................................................................
Annual cap ..............................................................................
Per failure, where intentional ..................................................
Per violation .............................................................................
First violation ...........................................................................
Subsequent violations .............................................................

$5,883
29,416
1,176,638
2,050
2,048,915
96
192,768
193
29,707
11,767
23,533

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 2019
adjustment. The following adjusted
amounts will take effect on January 14,
2020:

• Section 7A(g)(1) of the Clayton Act,
15 U.S.C. 18a(g)(1) (premerger filing
notification violations under the HartScott-Rodino Improvements Act)—
Increase from $42,530 to $43,280;
• Section 11(l) of the Clayton Act, 15
U.S.C. 21(l) (violations of cease and
desist orders issued under Clayton Act
section 11(b))—Increase from $22,595 to
$22,994;
• Section 5(l) of the FTC Act, 15
U.S.C. 45(l) (unfair or deceptive acts or
practices)—Increase from $42,530 to
$43,280;
• 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 $42,530 to $43,280;
• 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 $42,530 to $43,280;
• Section 10 of the FTC Act, 15 U.S.C.
50 (failure to file required reports)—
Increase from $559 to $569;
• Section 5 of the Webb-Pomerene
(Export Trade) Act, 15 U.S.C. 65 (failure
by associations engaged solely in export

Inflation Adjustment Act (‘‘FCPIAA’’), Public Law
101–410, 104 Stat. 890 (codified at 28 U.S.C. 2461
note).

2 81 FR 42476 (June 30, 2016); 82 FR 8135 (2017);
83 FR 2902 (2018); 84 FR 3980 (2019).
3 16 CFR 1.98.

FOR FURTHER INFORMATION CONTACT:

Kenny A. Wright, Attorney, Office of the
General Counsel, FTC, 600
Pennsylvania Avenue NW, Washington,
DC 20580, (202–326–2907), kwright@
ftc.gov.
SUPPLEMENTARY INFORMATION:

[FR Doc. 2020–00364 Filed 1–13–20; 8:45 am]

VerDate Sep<11>2014

§ 1083.1 Adjustment of civil penalty
amounts.

Penalty description

(b) The adjustments in paragraph (a)
of this section shall apply to civil
penalties assessed after January 15,
2020, whose associated violations
occurred on or after November 2, 2015.

ACTION:

2. Section 1083.1 is revised to read as
follows:

■

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Federal Register / Vol. 85, No. 9 / Tuesday, January 14, 2020 / Rules and Regulations
trade to file required statements)—
Increase from $559 to $569;
• 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 $559
to $569;
• 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 $559 to $569;
• 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 $559 to
$569;
• 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 $460 to $468;
• Section 525(a) of the Energy Policy
and Conservation Act, 42 U.S.C. 6395(a)
(recycled oil labeling violations)—
Increase from $22,595 to $22,994;
• 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
$42,530 to $43,280;
• 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 $3,993 to
$4,063;
• Section 1115(a) of the Medicare
Prescription Drug Improvement and
Modernization Act of 2003, Pub. L. 108–
173, as amended by Pub. L. 115–263, 21
U.S.C. 355 note (failure to comply with
filing requirements)—Increase from
$15,036 to $15,301; 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
$1,210,340 to $1,231,690.
Calculation of Inflation Adjustments

2015

monetary penalty under their
jurisdiction for inflation in January of
each year pursuant to a cost-of-living
adjustment.4 The cost-of-living
adjustment is based on the percent
change between the U.S. Department of
Labor’s Consumer Price Index for allurban 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 2020 is 1.01764. 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.

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

CALCULATION OF ADJUSTMENTS TO MAXIMUM CIVIL MONETARY PENALTIES

Citation

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16

CFR
CFR
CFR
CFR
CFR
CFR
CFR
CFR
CFR
CFR
CFR
CFR
CFR
CFR
CFR
CFR

2019 penalty
level

Description

1.98(a): 15 U.S.C. 18a(g)(1) .............
1.98(b): 15 U.S.C. 21(l) .....................
1.98(c): 15 U.S.C. 45(l) .....................
1.98(d): 15 U.S.C. 45(m)(1)(A) .........
1.98(e): 15 U.S.C. 45(m)(1)(B) .........
1.98(f): 15 U.S.C. 50 .........................
1.98(g): 15 U.S.C. 65 ........................
1.98(h): 15 U.S.C. 68d(b) .................
1.98(i): 15 U.S.C. 69a(e) ...................
1.98(j): 15 U.S.C. 69f(d)(2) ...............
1.98(k): 42 U.S.C. 6303(a) ................
1.98(l): 42 U.S.C. 6395(a) .................
1.98(l): 42 U.S.C. 6395(b) .................
1.98(m): 15 U.S.C. 1681s(a)(2) ........
1.98(n): 21 U.S.C. 355 note ..............
1.98(o): 42 U.S.C. 17304 ..................

Premerger filing notification violations ...........
Violations of cease and desist orders ............
Unfair or deceptive acts or practices .............
Unfair or deceptive acts or practices .............
Unfair or deceptive acts or practices .............
Failure to file required reports ........................
Failure to file required statements .................
Failure to maintain required records ..............
Failure to maintain required records ..............
Failure to maintain required records ..............
Knowing violations .........................................
Recycled oil labeling violations ......................
Willful violations ..............................................
Knowing violations .........................................
Non-compliance with filing requirements .......
Market manipulation or provision of false information to federal agencies.

Effective Dates of New Penalties

Procedural Requirements

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.

The FCPIAA, as amended, directs
agencies to adjust civil monetary
penalties through rulemaking and to
publish the required inflation
adjustments in the Federal Register,
notwithstanding section 553 of title 5,
United States Code. Pursuant to this
congressional mandate, prior public
notice and comment under the APA and
a delayed effective date are not required.

4 28

U.S.C. 2461 note (4).
(3), (5)(b); Office of Management and Budget,
Memorandum M–20–05, Implementation of Penalty
Inflation Adjustments for 2020, Pursuant to the
Federal Civil Penalties Inflation Adjustment Act
5 Id.

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16:28 Jan 13, 2020

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Improvements Act of 2015 (December 16, 2019),
available at: https://www.whitehouse.gov/wpcontent/uploads/2019/12/M-20-05.pdf.
6 28 U.S.C. 2461 note (6).

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$42,530
22,595
42,530
42,530
42,530
559
559
559
559
559
460
22,595
42,530
3,993
15,036
1,210,340

Adjustment
multiplier

1.01764
1.01764
1.01764
1.01764
1.01764
1.01764
1.01764
1.01764
1.01764
1.01764
1.01764
1.01764
1.01764
1.01764
1.01764
1.01764

2020 penalty
level
(rounded to
the nearest
dollar)
$43,280
22,994
43,280
43,280
43,280
569
569
569
569
569
468
22,994
43,280
4,063
15,301
1,231,690

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
7 A regulatory flexibility analysis under the RFA
is required only when an agency must publish a
notice of proposed rulemaking for comment. See 5
U.S.C. 603.

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2016

Federal Register / Vol. 85, No. 9 / Tuesday, January 14, 2020 / Rules and Regulations

designated this rule as not a ‘‘major
rule,’’ as defined by 5 U.S.C. 804(2).
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
Subpart L—Civil Penalty Adjustments
Under the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
Amended
1. The authority citation for part 1,
subpart L, continues to read as follows:

Modernization Act of 2003, Public Law
108–173, as amended by Public Law
115–263, 21 U.S.C. 355 note–$15,301;
(o) Section 814(a) of the Energy
Independence and Security Act of 2007,
42 U.S.C. 17304–$1,231,690; and
(p) Civil monetary penalties
authorized by reference to the Federal
Trade Commission Act under any other
provision of law within the jurisdiction
of the Commission—refer to the
amounts set forth in paragraphs (c), (d),
(e), and (f) of this section, as applicable.
By direction of the Commission.
April J. Tabor,
Acting Secretary.
[FR Doc. 2020–00314 Filed 1–13–20; 8:45 am]
BILLING CODE 6750–01–P

■

Authority: 28 U.S.C. 2461 note.
■

Federal Energy Regulatory
Commission

2. Revise § 1.98 to read as follows:

lotter on DSKBCFDHB2PROD with RULES

§ 1.98 Adjustment of civil monetary
penalty amounts.

18 CFR Parts 250 and 385

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 14,
2020, including those penalties whose
associated violation predated January
14, 2020.
(a) Section 7A(g)(1) of the Clayton
Act, 15 U.S.C. 18a(g)(1)–$43,280;
(b) Section 11(l) of the Clayton Act, 15
U.S.C. 21(l)–$22,994;
(c) Section 5(l) of the FTC Act, 15
U.S.C. 45(l)–$43,280;
(d) Section 5(m)(1)(A) of the FTC Act,
15 U.S.C. 45(m)(1)(A)–$43,280;
(e) Section 5(m)(1)(B) of the FTC Act,
15 U.S.C. 45(m)(1)(B)–$43,280;
(f) Section 10 of the FTC Act, 15
U.S.C. 50–$569;
(g) Section 5 of the Webb-Pomerene
(Export Trade) Act, 15 U.S.C. 65–$569;
(h) Section 6(b) of the Wool Products
Labeling Act, 15 U.SC. 68d(b)–$569;
(i) Section 3(e) of the Fur Products
Labeling Act, 15 U.S.C. 69a(e)–$569;
(j) Section 8(d)(2) of the Fur Products
Labeling Act, 15 U.S.C. 69f(d)(2)–$569;
(k) Section 333(a) of the Energy Policy
and Conservation Act, 42 U.S.C.
6303(a)–$468;
(l) Sections 525(a) and (b) of the
Energy Policy and Conservation Act, 42
U.S.C. 6395(a) and (b), respectively–
$22,994 and $43,280, respectively;
(m) Section 621(a)(2) of the Fair
Credit Reporting Act, 15 U.S.C.
1681s(a)(2)–$4,063;
(n) Section 1115(a) of the Medicare
Prescription Drug Improvement and

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DEPARTMENT OF ENERGY

[Docket No. RM20–2–000; Order No. 865]

Civil Monetary Penalty Inflation
Adjustments
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Final rule.
AGENCY:

The Federal Energy
Regulatory Commission (Commission) is
issuing a final rule to amend its
regulations governing the maximum
civil monetary penalties assessable for
violations of statutes, rules, and orders
within the Commission’s jurisdiction.
The Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended
most recently by the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015, requires the
Commission to issue this final rule.
DATES: This final rule is effective
January 14, 2020.
FOR FURTHER INFORMATION CONTACT:
Todd Hettenbach, Attorney, Office of
Enforcement, Federal Energy Regulatory
Commission, 888 First Street NE,
Washington, DC 20426, (202) 502–8794,
[email protected].
SUPPLEMENTARY INFORMATION:
1. In this final rule, the Federal
Energy Regulatory Commission
(Commission) is complying with its
statutory obligation to amend the civil
monetary penalties provided by law for
matters within the agency’s jurisdiction.
SUMMARY:

I. Background
2. The Federal Civil Penalties
Inflation Adjustment Act Improvements

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Act of 2015 (2015 Adjustment Act),1
which further amended the Federal
Civil Penalties Inflation Adjustment Act
of 1990 (1990 Adjustment Act),2
required the head of each Federal
agency to issue a rule by July 2016
adjusting for inflation each ‘‘civil
monetary penalty’’provided by law
within the agency’s jurisdiction and to
make further inflation adjustments on
an annual basis every January 15
thereafter.3
II. Discussion
3. The 2015 Adjustment Act defines a
civil monetary penalty as any penalty,
fine, or other sanction that: (A)(i) Is for
a specific monetary amount as provided
by Federal law; or (ii) has a maximum
amount provided for by Federal law; (B)
is assessed or enforced by an agency
pursuant to Federal law; and (C) is
assessed or enforced pursuant to an
administrative proceeding or a civil
action in the Federal courts.4 This
definition applies to the maximum civil
penalties that may be imposed under
the Federal Power Act (FPA),5 the
Natural Gas Act (NGA),6 the Natural Gas
Policy Act of 1978 (NGPA),7 and the
Interstate Commerce Act (ICA).8
4. Under the 2015 Adjustment Act,
the first step for such adjustment of a
civil monetary penalty for inflation
requires determining the percentage by
which the U.S. Department of Labor’s
Consumer Price Index for all-urban
consumers (CPI–U) for October of the
preceding year exceeds the CPI–U for
October of the year before that.9
The CPI–U for October 2019 exceeded
the CPI–U for October 2018 by 1.764
percent.10
5. The second step requires
multiplying the CPI–U percentage
increase by the applicable existing
maximum civil monetary penalty.11
1 Sec.

701, Public Law 114–74, 129 Stat. 584, 599.
Law 101–410, 104 Stat. 890 (codified as
amended at 28 U.S.C. 2461 note).
3 28 U.S.C. 2461 note, at (4). The Commission
made its January 2019 adjustment on January 8,
2019, in Docket No. RM19–9–000. See Civil
Monetary Penalty Inflation Adjustments, Order No.
853, 84 FR 966 (Feb. 1, 2019), FERC Stats. & Regs.
¶ 31,408 (2019).
4 Id. (3).
5 16 U.S.C. 791a et seq.
6 15 U.S.C. 717 et seq.
7 15 U.S.C. 3301 et seq.
8 49 App. U.S.C. 1 et seq. (1988).
9 28 U.S.C. 2461 note, at (5)(b)(1).
10 See, e.g., Memorandum from Russell T. Vought,
Office of Management and Budget, Implementation
of the Penalty Inflation Adjustments for 2019,
Pursuant to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (Dec. 16,
2019).
11 Id. (5)(a).
2 Public

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