Adjustments to Civil Penalty Amounts, 1070-1072 [2022-00213]
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Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Rules and Regulations
List of Subjects in 14 CFR Part 27
FEDERAL TRADE COMMISSION
Aircraft, Aviation safety, Reporting
and recordkeeping requirements.
16 CFR Part 1
Adjustments to Civil Penalty Amounts
Authority Citation
ACTION:
Authority: 49 U.S.C. 106(f), 106(g), 40113,
44701, 44702, 44704.
The Special Conditions
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Accordingly, pursuant to the
authority delegated to me by the
Administrator, the following special
conditions are issued as part of the type
certification basis for the Airbus
Helicopters (Airbus) Model AS350B2
and AS350B3 helicopters, as modified
by Vector Aerospace Helicopter Services
USA.
For certification of the stability
augmentation system and automatic
flight control system (SAS/AFSC)
installed on Airbus Model AS350B2 and
AS350B3 helicopters, instead of the
requirements of 14 CFR 27.1309(b) and
(c), the following must be met:
(a) These systems and their
equipment must be designed and
installed so that they do not adversely
affect the safety of the rotorcraft or its
occupants.
(b) These systems and their associated
components considered separately and
in relation to other systems must be
designed and installed so that:
(1) The occurrence of any catastrophic
failure condition is extremely
improbable;
(2) The occurrence of any hazardous
failure condition is extremely remote;
and
(3) The occurrence of any major
failure condition is remote.
(c) Information concerning an unsafe
system operating condition must be
provided in a timely manner to the crew
to enable them to take appropriate
corrective action. An appropriate alert
must be provided if immediate pilot
awareness and immediate or subsequent
corrective action are required. These
systems and their controls, including
indications and annunciations, must be
designed to minimize crew errors that
could create additional hazards.
Issued in Kansas City, Missouri, on January
4, 2022.
Patrick R. Mullen,
Manager, Technical Innovation Policy
Branch, Policy and Innovation Division,
Aircraft Certification Service.
[FR Doc. 2022–00096 Filed 1–7–22; 8:45 am]
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Federal Trade Commission.
Final rule.
AGENCY:
The authority citation for these
special conditions is as follows:
The Federal Trade
Commission (‘‘FTC’’ or ‘‘Commission’’)
is implementing adjustments to the civil
penalty amounts within its jurisdiction
to account for inflation, as required by
law.
DATES: Effective January 10, 2022.
FOR FURTHER INFORMATION CONTACT:
Marie Choi, Attorney (202–326–3368),
Office of the General Counsel, Federal
Trade Commission, 600 Pennsylvania
Avenue NW, Washington, DC 20580.
SUPPLEMENTARY INFORMATION: The
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 1 directs agencies to adjust the civil
penalty maximums under their
jurisdiction for inflation every January.
Accordingly, the Commission issues
annual adjustments to the maximum
civil penalty amounts under its
jurisdiction.2
Commission Rule 1.98 sets forth the
applicable civil penalty amounts for
violations of certain laws enforced by
the Commission.3 As directed by the
FCPIAA, the Commission is issuing
adjustments to increase these maximum
civil penalty amounts to address
inflation since its prior 2021
adjustment. The following adjusted
amounts will take effect on January 10,
2022:
• Section 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 $43,792 to $46,517;
• Section 11(l) of the Clayton Act, 15
U.S.C. 21(l) (violations of cease and
desist orders issued under Clayton Act
section 11(b))—Increase from $23,266 to
$24,714;
• Section 5(l) of the FTC Act, 15
U.S.C. 45(l) (unfair or deceptive acts or
practices)—Increase from $43,792 to
$46,517;
• 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 $43,792 to $46,517;
SUMMARY:
1 Public Law 114–74, 701, 129 Stat. 599 (2015).
The Act amends the Federal Civil Penalties
Inflation Adjustment Act (‘‘FCPIAA’’), Public Law
101–410, 104 Stat. 890 (codified at 28 U.S.C. 2461
note).
2 81 FR 42476 (2016); 82 FR 8135 (2017); 83 FR
2902 (2018); 84 FR 3980 (2019), 85 FR 2014 (2020);
86 FR 2539 (2021).
3 16 CFR 1.98.
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• 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 $43,792 to $46,517;
• Section 10 of the FTC Act, 15 U.S.C.
50 (failure to file required reports)—
Increase from $576 to $612;
• 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 $576 to $612;
• 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 $576
to $612;
• 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 $576 to $612;
• 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 $576 to
$612;
• 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 $474 to $503;
• Section 525(a) of the Energy Policy
and Conservation Act, 42 U.S.C. 6395(a)
(recycled oil labeling violations)—
Increase from $23,266 to $24,714;
• 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
$43,792 to $46,517;
• 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 $4,111 to
$4,367;
• 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 (failure to
comply with filing requirements)—
Increase from $15,482 to $16,445; 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
$1,246,249 to $1,323,791.
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
4 28
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U.S.C. 2461 note (4).
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Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Rules and Regulations
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 2021 is 1.06222. The
FCPIAA also directs that these penalty
level adjustments should be rounded to
the nearest dollar. Agencies do not have
discretion over whether to adjust a
maximum civil penalty, or the method
used to determine the adjustment.
The following chart illustrates the
application of these adjustments to the
civil monetary penalties under the
Commission’s jurisdiction.
CALCULATION OF ADJUSTMENTS TO MAXIMUM CIVIL MONETARY PENALTIES
Citation
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
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 ..................
Effective Dates of New Penalties
These new penalty levels apply to
civil penalties assessed after the
effective date of the applicable
adjustment, including civil penalties
whose associated violation predated the
effective date.6 These adjustments do
not retrospectively change previously
assessed or enforced civil penalties that
the FTC is actively collecting or has
collected.
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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.
5 Id. (3), (5)(b); Office of Management and Budget,
Memorandum M–22–07, Implementation of Penalty
Inflation Adjustments for 2022, Pursuant to the
Federal Civil Penalties Inflation Adjustment Act
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2021 Penalty
level
($)
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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.
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Office of
Information and Regulatory Affairs
designated this rule as not a ‘‘major
rule,’’ as defined by 5 U.S.C. 804(2).
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 subpart L
continues to read as follows:
■
Authority: 28 U.S.C. 2461 note.
■
2. Revise § 1.98 to read as follows:
Improvements Act of 2015 (December 15, 2021),
available at: https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.pdf.
6 28 U.S.C. 2461 note (6).
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$43,792
23,266
43,792
43,792
43,792
576
576
576
576
576
474
23,266
43,792
4,111
15,482
1,246,249
Adjustment
multiplier
1.06222
1.06222
1.06222
1.06222
1.06222
1.06222
1.06222
1.06222
1.06222
1.06222
1.06222
1.06222
1.06222
1.06222
1.06222
1.06222
2022 Penalty
level
(rounded to
the nearest
dollar)
$46,517
24,714
46,517
46,517
46,517
612
612
612
612
612
503
24,714
46,517
4,367
16,445
1,323,791
§ 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 10,
2022, including those penalties whose
associated violation predated January
10, 2022.
(a) Section 7A(g)(1) of the Clayton
Act, 15 U.S.C. 18a(g)(1)—$46,517;
(b) Section 11(l) of the Clayton Act, 15
U.S.C. 21(l)—$24,714;
(c) Section 5(l) of the FTC Act, 15
U.S.C. 45(l)—$46,517;
(d) Section 5(m)(1)(A) of the FTC Act,
15 U.S.C. 45(m)(1)(A)—$46,517;
(e) Section 5(m)(1)(B) of the FTC Act,
15 U.S.C. 45(m)(1)(B)—$46,517;
(f) Section 10 of the FTC Act, 15
U.S.C. 50—$612;
(g) Section 5 of the Webb-Pomerene
(Export Trade) Act, 15 U.S.C. 65—$612;
(h) Section 6(b) of the Wool Products
Labeling Act, 15 U.SC. 68d(b)—$612;
(i) Section 3(e) of the Fur Products
Labeling Act, 15 U.S.C. 69a(e)—$612;
(j) Section 8(d)(2) of the Fur Products
Labeling Act, 15 U.S.C. 69f(d)(2)—$612;
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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(k) Section 333(a) of the Energy Policy
and Conservation Act, 42 U.S.C.
6303(a)—$503;
(l) Sections 525(a) and (b) of the
Energy Policy and Conservation Act, 42
U.S.C. 6395(a) and (b), respectively—
$24,714 and $46,517, respectively;
(m) Section 621(a)(2) of the Fair
Credit Reporting Act, 15 U.S.C.
1681s(a)(2)—$4,367;
(n) Section 1115(a) of the Medicare
Prescription Drug Improvement and
Modernization Act of 2003, Public Law
108–173, as amended by Public Law
115–263, 21 U.S.C. 355 note—$16,445;
(o) Section 814(a) of the Energy
Independence and Security Act of 2007,
42 U.S.C. 17304—$1,323,791; and
(p) Civil monetary penalties
authorized by reference to the Federal
Trade Commission Act under any other
provision of law within the jurisdiction
of the Commission—refer to the
amounts set forth in paragraphs (c), (d),
(e) and (f) of this section, as applicable.
By direction of the Commission.
April Tabor,
Secretary.
[FR Doc. 2022–00213 Filed 1–7–22; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF STATE
22 CFR Parts 35, 103, 127, and 138
[Public Notice: 11617]
RIN 1400–AF43
Department of State 2022 Civil
Monetary Penalties Inflationary
Adjustment
Department of State.
Final rule.
AGENCY:
ACTION:
This final rule is issued to
adjust the civil monetary penalties
(CMP) for regulatory provisions
maintained and enforced by the
Department of State. The revised CMP
adjusts the amount of civil monetary
penalties assessed by the Department of
State based on the December 2021
guidance from the Office of
Management and Budget. The new
amounts will apply only to those
penalties assessed on or after the
effective date of this rule, regardless of
the date on which the underlying facts
or violations occurred.
DATES: This final rule is effective on
January 10, 2022.
FOR FURTHER INFORMATION CONTACT:
Alice Kottmyer, Attorney-Adviser,
Office of Management, kottmyeram@
state.gov. ATTN: Regulatory Change,
CMP Adjustments, (202) 647–2318.
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SUMMARY:
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The
Federal Civil Penalties Inflation
Adjustment Act of 1990, Public Law
101–410, as amended by the Debt
Collection Improvement Act of 1996,
Public Law 104–134, required the head
of each agency to adjust its CMPs for
inflation no later than October 23, 1996
and required agencies to make
adjustments at least once every four
years thereafter. The Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015, Section 701
of Public Law 114–74 (the 2015 Act)
further amended the 1990 Act by
requiring agencies to adjust CMPs, if
necessary, pursuant to a ‘‘catch-up’’
adjustment methodology prescribed by
the 2015 Act, which mandated that the
catch-up adjustment take effect no later
than August 1, 2016. Additionally, the
2015 Act required agencies to make
annual adjustments to their respective
CMPs in accordance with guidance
issued by the Office of Management and
Budget (OMB).
Based on these statutes, the
Department of State (the Department)
published a final rule in June 2016 1 to
implement the ‘‘catch-up’’ provisions;
and annual updates to its CMPs in
January 2017,2 January 2018,3 March
2019 (delayed due to the Government
shutdown),4 January 2020,5 and
February 2021 (delayed due to
transition issues).6
On December 15, 2021, OMB notified
agencies that the annual cost-of-living
adjustment multiplier for 2021, based
on the Consumer Price Index, is
1.06222. Additional information may be
found in OMB Memorandum M–22–07
at: https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.pdf.
This final rule amends Department
CMPs for fiscal year 2022.
SUPPLEMENTARY INFORMATION:
Overview of the Areas Affected by This
Rule
Within the Department of State (title
22, Code of Federal Regulations), this
rule affects four areas:
(1) Part 35, which implements the
Program Fraud Civil Remedies Act of
1986 (PFCRA), codified at 31 U.S.C.
3801–3812;
(2) Part 103, which implements the
Chemical Weapons Convention
Implementation Act of 1998 (CWC Act);
(3) Part 127, which implements the
penalty provisions of sections 38(e),
39A(c), and 40(k) of the Arms Export
1 81
FR 36771 (Jun. 8, 2016).
FR 3168 (Jan. 11, 2017).
3 83 FR 234 (Jan. 3, 2018).
4 84 FR 9957 (Mar. 19, 2019).
5 85 FR 2020 (Jan. 14, 2020).
6 86 FR 7804 (Feb. 2, 2021).
2 82
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Control Act (AECA) (22 U.S.C. 2778(e),
2779a(c), and 2780(k)); and
(4) Part 138, which implements
Section 319 of Public Law 101–121,
codified at 31 U.S.C. 1352, prohibits
recipients of Federal contracts, grants,
and loans from using appropriated
funds for lobbying the executive or
legislative branches of the Federal
Government in connection with a
specific contract.
Specific Changes to 22 CFR Made by
This Rule
I. Part 35
The PFCRA, enacted in 1986,
authorizes agencies, with approval from
the Department of Justice, to pursue
individuals or firms for false claims. In
addition to applying the annual
adjustment, this rule also corrects a
typographical error made in the Code of
Federal Regulations (CFR). On January
14, 2020, a rule (85 FR 2020) was
published in the Federal Register noting
the inflationary adjustment in § 35.3 for
2020. Although the rule correctly listed
the maximum amount at $349,969, an
error was made in amending the CFR
itself, with the amount entered as
$343,969. The inflationary adjustment
for 2021 (86 FR 7804 (February 2, 2020))
then applied the correct multiplier
(1.01182), but to the erroneously entered
number. The maximum amount was
listed for 2021 as $348,035 but should
have been $354,106.
This rule corrects those errors, and for
the 2022 inflationary adjustment uses
the proper $354,106 multiplied by the
inflationary adjustment for 2022
(1.06222), resulting in a maximum
liability of $376,138. The amounts for
the maximum penalty for each false
claim or statement were correctly
entered in both 2020 and 2021.
Consequently, applying the 2022
multiplier, the new maximum penalty is
$12,537 for each false claim or
statement, up to a maximum of
$376,138.
II. Part 103
The CWC Act provided domestic
implementation of the Convention on
the Prohibition of the Development,
Production, Stockpiling, and Use of
Chemical Weapons and on Their
Destruction. The penalty provisions of
the CWC Act are codified at 22 U.S.C.
6761. Applying the 2021 multiplier, the
new maximum amounts are as follows:
Prohibited acts related to inspections,
$42,163; for recordkeeping violations,
$8,433.
III. Part 127
The Assistant Secretary of State for
Political-Military Affairs is responsible
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[Federal Register Volume 87, Number 6 (Monday, January 10, 2022)]
[Rules and Regulations]
[Pages 1070-1072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00213]
=======================================================================
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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 10, 2022.
FOR FURTHER INFORMATION CONTACT: Marie Choi, Attorney (202-326-3368),
Office of the General Counsel, Federal Trade Commission, 600
Pennsylvania Avenue NW, Washington, DC 20580.
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, 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 (2016); 82 FR 8135 (2017); 83 FR 2902 (2018); 84
FR 3980 (2019), 85 FR 2014 (2020); 86 FR 2539 (2021).
---------------------------------------------------------------------------
Commission Rule 1.98 sets forth the applicable civil penalty
amounts for violations of certain laws enforced by the Commission.\3\
As directed by the FCPIAA, the Commission is issuing adjustments to
increase these maximum civil penalty amounts to address inflation since
its prior 2021 adjustment. The following adjusted amounts will take
effect on January 10, 2022:
---------------------------------------------------------------------------
\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 $43,792 to $46,517;
Section 11(l) of the Clayton Act, 15 U.S.C. 21(l)
(violations of cease and desist orders issued under Clayton Act section
11(b))--Increase from $23,266 to $24,714;
Section 5(l) of the FTC Act, 15 U.S.C. 45(l) (unfair or
deceptive acts or practices)--Increase from $43,792 to $46,517;
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 $43,792 to
$46,517;
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 $43,792 to
$46,517;
Section 10 of the FTC Act, 15 U.S.C. 50 (failure to file
required reports)--Increase from $576 to $612;
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 $576 to $612;
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 $576 to $612;
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 $576 to $612;
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 $576 to $612;
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 $474 to $503;
Section 525(a) of the Energy Policy and Conservation Act,
42 U.S.C. 6395(a) (recycled oil labeling violations)--Increase from
$23,266 to $24,714;
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 $43,792 to $46,517;
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 $4,111 to $4,367;
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 (failure to comply
with filing requirements)--Increase from $15,482 to $16,445; 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 $1,246,249 to $1,323,791.
Calculation of Inflation Adjustments
The FCPIAA, as amended, directs federal agencies to adjust each
civil monetary penalty under their jurisdiction for inflation in
January of each year pursuant to a cost-of-living adjustment.\4\ The
cost-of-living
[[Page 1071]]
adjustment is based on the percent change between the U.S. Department
of Labor's Consumer Price Index for all-urban consumers (``CPI-U'') for
the month of October preceding the date of the adjustment, and the CPI-
U for October of the prior year.\5\ Based on that formula, the cost-of-
living adjustment multiplier for 2021 is 1.06222. The FCPIAA also
directs that these penalty level adjustments should be rounded to the
nearest dollar. Agencies do not have discretion over whether to adjust
a maximum civil penalty, or the method used to determine the
adjustment.
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\4\ 28 U.S.C. 2461 note (4).
\5\ Id. (3), (5)(b); Office of Management and Budget, Memorandum
M-22-07, Implementation of Penalty Inflation Adjustments for 2022,
Pursuant to the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (December 15, 2021), available at: https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-07.pdf.
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The following chart illustrates the application of these
adjustments to the civil monetary penalties under the Commission's
jurisdiction.
Calculation of Adjustments to Maximum Civil Monetary Penalties
----------------------------------------------------------------------------------------------------------------
2022 Penalty
2021 Penalty Adjustment level (rounded
Citation Description level ($) multiplier to the nearest
dollar)
----------------------------------------------------------------------------------------------------------------
16 CFR 1.98(a): 15 U.S.C. 18a(g)(1)... Premerger filing $43,792 1.06222 $46,517
notification violations.
16 CFR 1.98(b): 15 U.S.C. 21(l)....... Violations of cease and 23,266 1.06222 24,714
desist orders.
16 CFR 1.98(c): 15 U.S.C. 45(l)....... Unfair or deceptive acts 43,792 1.06222 46,517
or practices.
16 CFR 1.98(d): 15 U.S.C. 45(m)(1)(A). Unfair or deceptive acts 43,792 1.06222 46,517
or practices.
16 CFR 1.98(e): 15 U.S.C. 45(m)(1)(B). Unfair or deceptive acts 43,792 1.06222 46,517
or practices.
16 CFR 1.98(f): 15 U.S.C. 50.......... Failure to file required 576 1.06222 612
reports.
16 CFR 1.98(g): 15 U.S.C. 65.......... Failure to file required 576 1.06222 612
statements.
16 CFR 1.98(h): 15 U.S.C. 68d(b)...... Failure to maintain 576 1.06222 612
required records.
16 CFR 1.98(i): 15 U.S.C. 69a(e)...... Failure to maintain 576 1.06222 612
required records.
16 CFR 1.98(j): 15 U.S.C. 69f(d)(2)... Failure to maintain 576 1.06222 612
required records.
16 CFR 1.98(k): 42 U.S.C. 6303(a)..... Knowing violations...... 474 1.06222 503
16 CFR 1.98(l): 42 U.S.C. 6395(a)..... Recycled oil labeling 23,266 1.06222 24,714
violations.
16 CFR 1.98(l): 42 U.S.C. 6395(b)..... Willful violations...... 43,792 1.06222 46,517
16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2). Knowing violations...... 4,111 1.06222 4,367
16 CFR 1.98(n): 21 U.S.C. 355 note.... Non-compliance with 15,482 1.06222 16,445
filing requirements.
16 CFR 1.98(o): 42 U.S.C. 17304....... Market manipulation or 1,246,249 1.06222 1,323,791
provision of false
information to federal
agencies.
----------------------------------------------------------------------------------------------------------------
Effective Dates of New Penalties
These new penalty levels apply to civil penalties assessed after
the effective date of the applicable adjustment, including civil
penalties whose associated violation predated the effective date.\6\
These adjustments do not retrospectively change previously assessed or
enforced civil penalties that the FTC is actively collecting or has
collected.
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\6\ 28 U.S.C. 2461 note (6).
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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.
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\7\ A regulatory flexibility analysis under the RFA is required
only when an agency must publish a notice of proposed rulemaking for
comment. See 5 U.S.C. 603.
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Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).
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 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 10, 2022, including those penalties
whose associated violation predated January 10, 2022.
(a) Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)--
$46,517;
(b) Section 11(l) of the Clayton Act, 15 U.S.C. 21(l)--$24,714;
(c) Section 5(l) of the FTC Act, 15 U.S.C. 45(l)--$46,517;
(d) Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)--
$46,517;
(e) Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)--
$46,517;
(f) Section 10 of the FTC Act, 15 U.S.C. 50--$612;
(g) Section 5 of the Webb-Pomerene (Export Trade) Act, 15 U.S.C.
65--$612;
(h) Section 6(b) of the Wool Products Labeling Act, 15 U.SC.
68d(b)--$612;
(i) Section 3(e) of the Fur Products Labeling Act, 15 U.S.C.
69a(e)--$612;
(j) Section 8(d)(2) of the Fur Products Labeling Act, 15 U.S.C.
69f(d)(2)--$612;
[[Page 1072]]
(k) Section 333(a) of the Energy Policy and Conservation Act, 42
U.S.C. 6303(a)--$503;
(l) Sections 525(a) and (b) of the Energy Policy and Conservation
Act, 42 U.S.C. 6395(a) and (b), respectively--$24,714 and $46,517,
respectively;
(m) Section 621(a)(2) of the Fair Credit Reporting Act, 15 U.S.C.
1681s(a)(2)--$4,367;
(n) Section 1115(a) of the Medicare Prescription Drug Improvement
and Modernization Act of 2003, Public Law 108-173, as amended by Public
Law 115-263, 21 U.S.C. 355 note--$16,445;
(o) Section 814(a) of the Energy Independence and Security Act of
2007, 42 U.S.C. 17304--$1,323,791; and
(p) Civil monetary penalties authorized by reference to the Federal
Trade Commission Act under any other provision of law within the
jurisdiction of the Commission--refer to the amounts set forth in
paragraphs (c), (d), (e) and (f) of this section, as applicable.
By direction of the Commission.
April Tabor,
Secretary.
[FR Doc. 2022-00213 Filed 1-7-22; 8:45 am]
BILLING CODE 6750-01-P
