Adjustments to Civil Penalty Amounts, 2014-2016 [2020-00314]

Download as PDF 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. lotter on DSKBCFDHB2PROD with RULES 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: ■ PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\14JAR1.SGM 14JAR1 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 lotter on DSKBCFDHB2PROD with RULES 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 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. VerDate Sep<11>2014 16:28 Jan 13, 2020 Jkt 250001 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). PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 $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. E:\FR\FM\14JAR1.SGM 14JAR1 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 VerDate Sep<11>2014 16:28 Jan 13, 2020 Jkt 250001 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, Todd.Hettenbach@ferc.gov. 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 PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 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 E:\FR\FM\14JAR1.SGM 14JAR1

Agencies

[Federal Register Volume 85, Number 9 (Tuesday, January 14, 2020)]
[Rules and Regulations]
[Pages 2014-2016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00314]


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

FEDERAL TRADE COMMISSION

16 CFR Part 1


Adjustments to Civil Penalty Amounts

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 14, 2020.

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

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 \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\
---------------------------------------------------------------------------

    \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).
    \2\ 81 FR 42476 (June 30, 2016); 82 FR 8135 (2017); 83 FR 2902 
(2018); 84 FR 3980 (2019).
---------------------------------------------------------------------------

    Commission Rule Sec.  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:
---------------------------------------------------------------------------

    \3\ 16 CFR 1.98.
---------------------------------------------------------------------------

     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 $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

[[Page 2015]]

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

    The 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 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 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.
---------------------------------------------------------------------------

    \4\ 28 U.S.C. 2461 note (4).
    \5\ Id. (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 
Improvements Act of 2015 (December 16, 2019), available at: https://www.whitehouse.gov/wp-content/uploads/2019/12/M-20-05.pdf.
---------------------------------------------------------------------------

    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
----------------------------------------------------------------------------------------------------------------
                                                                                                   2020 penalty
                                                                   2019 penalty     Adjustment    level (rounded
               Citation                        Description             level        multiplier    to the nearest
                                                                                                      dollar)
----------------------------------------------------------------------------------------------------------------
16 CFR 1.98(a): 15 U.S.C. 18a(g)(1)...  Premerger filing                 $42,530         1.01764         $43,280
                                         notification violations.
16 CFR 1.98(b): 15 U.S.C. 21(l).......  Violations of cease and           22,595         1.01764          22,994
                                         desist orders.
16 CFR 1.98(c): 15 U.S.C. 45(l).......  Unfair or deceptive acts          42,530         1.01764          43,280
                                         or practices.
16 CFR 1.98(d): 15 U.S.C. 45(m)(1)(A).  Unfair or deceptive acts          42,530         1.01764          43,280
                                         or practices.
16 CFR 1.98(e): 15 U.S.C. 45(m)(1)(B).  Unfair or deceptive acts          42,530         1.01764          43,280
                                         or practices.
16 CFR 1.98(f): 15 U.S.C. 50..........  Failure to file required             559         1.01764             569
                                         reports.
16 CFR 1.98(g): 15 U.S.C. 65..........  Failure to file required             559         1.01764             569
                                         statements.
16 CFR 1.98(h): 15 U.S.C. 68d(b)......  Failure to maintain                  559         1.01764             569
                                         required records.
16 CFR 1.98(i): 15 U.S.C. 69a(e)......  Failure to maintain                  559         1.01764             569
                                         required records.
16 CFR 1.98(j): 15 U.S.C. 69f(d)(2)...  Failure to maintain                  559         1.01764             569
                                         required records.
16 CFR 1.98(k): 42 U.S.C. 6303(a).....  Knowing violations......             460         1.01764             468
16 CFR 1.98(l): 42 U.S.C. 6395(a).....  Recycled oil labeling             22,595         1.01764          22,994
                                         violations.
16 CFR 1.98(l): 42 U.S.C. 6395(b).....  Willful violations......          42,530         1.01764          43,280
16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2).  Knowing violations......           3,993         1.01764           4,063
16 CFR 1.98(n): 21 U.S.C. 355 note....  Non-compliance with               15,036         1.01764          15,301
                                         filing requirements.
16 CFR 1.98(o): 42 U.S.C. 17304.......  Market manipulation or         1,210,340         1.01764       1,231,690
                                         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.
---------------------------------------------------------------------------

    \6\ 28 U.S.C. 2461 note (6).
---------------------------------------------------------------------------

Procedural Requirements

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

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

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs

[[Page 2016]]

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

0
1. The authority citation for part 1, 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 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 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