Adjustment of Civil Monetary Penalty Amounts, 42476-42478 [2016-15302]

Download as PDF 42476 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations 1844M90G01 ...................................................................... [FR Doc. C1–2016–14474 Filed 6–29–16; 8:45 am] BILLING CODE 1505–01–D FEDERAL TRADE COMMISSION 16 CFR Part 1 Adjustment of Civil Monetary Penalty Amounts Federal Trade Commission. Interim final rule. AGENCY: ACTION: 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, kwright@ ftc.gov. SUMMARY: 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 catchup adjustment, the Adjustment Improvements Act directs agencies to srobinson on DSK5SPTVN1PROD with RULES SUPPLEMENTARY INFORMATION: 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). VerDate Sep<11>2014 20:00 Jun 29, 2016 Jkt 238001 GWN005MF GWN005MG GWN0087M GWN0087N GWN00DGK GWN00DGL GWNBJ992 GWNBK667 GWNBK674 GWNBK675 GWNBK743 GWNBK744 GWNBK751 GWNBK752 GWNBK753 GWNBK754 GWNBK841 GWNBK842 GWNBK843 GWNBK844 GWNBK952 GWNBK953 GWNBK954 GWNBK955 GWNBK956 GWNBK957 GWNBK958 GWNBK959 GWNBS077 GWNBS078 GWNBS079 GWNBS080 GWNBS081 GWNBS157 GWNBS158 GWNBS159 GWNBS160 GWNBS266 GWNBS267 GWNBS268 GWNBS269 GWNBS270 adjust their civil penalties for inflation every January thereafter. 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. 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 multifactor 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 As required by the Act, the following adjusted amounts will take effect on August 1, 2016: 2 16 CFR 1.98. 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.gpo.gov/fdsys/pkg/FR-1997-04-08/pdf/978941.pdf. 3 15 PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 GWNBS497 GWNBS499 GWNBS500 GWNBS501 GWNBS502 GWNBS609 GWNBS610 GWNBS611 GWNBS612 GWNBS613 GWNBS614 GWNBS721 GWNBS722 GWNBS723 GWNBS724 GWNBS794 GWNBS810 GWNBS811 GWNBS812 GWNBS813 GWNBS814 GWNBS910 GWNBS911 GWNBS912 GWNBS914 GWNBS915 GWNBS982 GWNBS983 • Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1) (premerger filing notification violations under the HartScott-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 § 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; E:\FR\FM\30JNR1.SGM 30JNR1 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations • 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 42477 adjustments should be rounded to the nearest dollar. The Act provides, however, that the amount of the catchup increase for 2016 shall not exceed 150 percent of the amount of the civil penalty in effect on November 2, 2015. 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. CALCULATION OF ADJUSTMENTS TO MAXIMUM CIVIL MONETARY PENALTIES Adjustment multiplier (year) Baseline penalty Amount after adjustment multiplier is applied to aseline penalty Current penalty Subject to cap? Adjusted maximum Citation Description 16 CFR 1.98(a) 15 U.S.C. 18a(g)(1). 16 CFR 1.98(b) 15 U.S.C. 21(l) .. $10,000 8 4.10774 (1976) $41,077 $16,000 Yes ............... $40,000 5,000 9 8.08973 (1959) 40,449 8,500 Yes ............... 21,250 10 5.21575 52,158 16,000 Yes ............... 40,000 16 CFR 1.98(d) 15 U.S.C. 45(m)(1)(A). 16 CFR 1.98(e) 15 U.S.C. 45(m)(1)(B). 16 CFR 1.98(f) 15 U.S.C. 50 ....... Premerger filing notification violations. Violations of Clayton Act cease and desist orders. Violations of FTC Act cease and desist orders. Unfair or deceptive acts or practices. Unfair or deceptive acts or practices. Failure to file required reports ..... 43,322 16,000 Yes ............... 40,000 43,322 16,000 Yes ............... 40,000 2,355 210 Yes ............... 525 1.98(g) 15 U.S.C. 65 ................... Failure to file required statements 100 1,487 210 Yes ............... 525 1.98(h) 15 U.S.C. 68d(b) ............. 100 1,699 210 Yes ............... 525 908 210 Yes ............... 525 908 210 Yes ............... 525 1.98(k) 42 U.S.C. 6303(a) ........... Failure to maintain required records. Failure to maintain required records. Failure to maintain required records. Knowing violations ....................... 100 433 210 No ................. 433 1.98(l) 42 U.S.C. 6395(a) ............ Recycled oil labeling violations ... 5,000 21,661 8,500 Yes ............... 21,250 1.98(l) 42 U.S.C. 6395(b) ............ Willful violations ........................... 10,000 43,322 16,000 Yes ............... 40,000 1.98(m) 15 U.S.C. 1681s(a)(2) .... Knowing violations ....................... 2,500 3,756 3,500 No ................. 3,756 1.98(n) 21 U.S.C. 355 note ......... Non-compliance with filing requirements. Market manipulation or provision of false information to federal agencies. 11,000 14,142 12,100 No ................. 14,142 1,138,330 1,100,000 No ................. 1,138,330 16 CFR 1.98(c) 15 U.S.C. 45(l) ... 1.98(i) 15 U.S.C. 69a(e) .............. 1.98(j) 15 U.S.C. 69f(d)(2) ........... srobinson on DSK5SPTVN1PROD with RULES 1.98(o) 42 U.S.C. 17304 ............. 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. VerDate Sep<11>2014 20:00 Jun 29, 2016 Jkt 238001 10,000 10,000 10,000 100 100 100 1,000,000 (1973) 11 4.33220 (1975) 12 4.33220 (1975) 13 23.54832 (1914) 14 14.86488 (1918) 15 16.98843 (1940) 16 9.07779 (1951) 17 9.07779 (1951) 18 4.33220 (1975) 19 4.33220 (1975) 20 4.33220 (1975) 21 1.50245 (1996) 22 1.28561 (2003) 23 1.13833 (2007) 7 Id. 14 Public 8 Public note (4)(c). 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). 15 Public PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 Law 65–126, 40 Stat. 517 (1918). 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). 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 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. 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. List of Subjects for 16 CFR Part 1 Administrative practice and procedure, Penalties, Trade practices. srobinson on DSK5SPTVN1PROD with RULES 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: 24 Public Law 114–74, 701(b)(3) (amending section 6 of the FCPIAA). 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. VerDate Sep<11>2014 20:00 Jun 29, 2016 Jkt 238001 ■ 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. 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. Frm 00026 Fmt 4700 Sfmt 4700 [FR Doc. 2016–15302 Filed 6–29–16; 8:45 am] BILLING CODE 6750–01–P DEPARTMENT OF THE INTERIOR Bureau of Indian Affairs § 1.98 Adjustment of civil monetary penalty amounts. PO 00000 By direction of the Commission. April Tabor, Acting Secretary. [167A2100DD/AAKC001030/ A0A501010.999900 253G] 25 CFR Parts 140, 141, 211, 213, 225, 226, 227, 243, 249 RIN 1076–AF32 Civil Penalties Inflation Adjustments Bureau of Indian Affairs, Interior. ACTION: Interim final rule. AGENCY: This rule adjusts the level of civil monetary penalties contained in Indian Affairs regulations with an initial ‘‘catch-up’’ adjustment under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget (OMB) guidance. DATES: This rule is effective on August 1, 2016. Comments will be accepted until August 29, 2016. ADDRESSES: You may submit comments by any of the following methods: • Federal eRulemaking Portal: www.regulations.gov. Search for Docket No. BIA–2016–0004 and follow the instructions for submitting comments. • Mail, Hand Delivery, or Courier: Elizabeth Appel, Director, Office of Regulatory Affairs and Collaborative Action—Indian Affairs, U.S. Dept. of the Interior, 1849 C Street NW., Mail Stop 3642, Washington, DC 20240. FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Director, Office of Regulatory Affairs and Collaborative Action, Office of the Assistant Secretary—Indian Affairs; telephone (202) 273–4680, elizabeth.appel@ bia.gov. SUMMARY: SUPPLEMENTARY INFORMATION: I. Background II. Description of Changes III. Procedural Requirements A. Regulatory Planning and Review (E.O. 12866) B. Regulatory Flexibility Act C. Small Business Regulatory Enforcement Fairness Act D. Unfunded Mandates Reform Act E. Takings (E.O. 12630) F. Federalism (E.O. 13132) G. Civil Justice Reform (E.O. 12988) H. Consultation with Indian Tribes (E.O. 13175) E:\FR\FM\30JNR1.SGM 30JNR1

Agencies

[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Rules and Regulations]
[Pages 42476-42478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15302]


=======================================================================
-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION

16 CFR Part 1


Adjustment of Civil Monetary Penalty Amounts

AGENCY: Federal Trade Commission.

ACTION: Interim final rule.

-----------------------------------------------------------------------

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, kwright@ftc.gov.

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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \2\ 16 CFR 1.98.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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.gpo.gov/fdsys/pkg/FR-1997-04-08/pdf/97-8941.pdf.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               Amount
                                                                                               after
                                                                                             adjustment
                                                               Baseline      Adjustment      multiplier    Current                             Adjusted
              Citation                     Description         penalty       multiplier      is applied    penalty       Subject to cap?       maximum
                                                                               (year)            to
                                                                                              baseline
                                                                                              penalty
--------------------------------------------------------------------------------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[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.
---------------------------------------------------------------------------

    \24\ Public Law 114-74, 701(b)(3) (amending section 6 of the 
FCPIAA).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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