FTC Issues Changes to Some Civil Penalty Amounts

The Federal Trade Commission has adjusted some of its civil penalty dollar amounts in accordance with the Federal Civil Penalties Inflation Adjustment Act, which directs federal agencies to increase civil penalties under their jurisdiction to account for inflation at least once every four years. The FTC previously adjusted civil penalty amounts in 1996, 2004, and 2009; no increases were warranted in 2000.

Adjustments to the civil penalty amounts are based on the increase in the Consumer Price Index from June of the year of the last adjustment and June of the year before the current adjustment. The agency approved final amendments to Commission Rule 1.98 with the following increases:

• for violations of cease-and-desist orders issued under Section 11(l) of the Clayton Act, from $7,500 to $8,500;

• for failure to file reports required by Section 10 of the FTC Act, from $110 to $210;

• for failure to report required business information with the FTC under Section 5 of the Webb-Pomerene (Export Trade) Act, from $110 to $210;

• for failure to maintain proper fiber content records under Section 6(b) of the Wool Products Labeling Act, from $110 to $210;

• for failure to maintain records under Section 3(e) of the Fur Products Labeling Act, from $110 to $210;

• for failure to maintain records under Section 8(d)(2) of the Fur Products Labeling Act, from $110 to $210;

• for certain violations of Section 333(a) of the Energy Policy and Conservation Act, from $110 to $210;

• for recycled oil labeling violations of Section 525(a) of the Energy Policy and Conservation Act, from $7,500 to $8,500;

• for failure to comply with filing requirements of Section 1115(a) of the Medicare Prescription Drug Improvement and Modernization Act of 2003, from $11,000 to $12,100; and

• for violations of prohibitions on market manipulation and provision of false information to federal agencies under Section 814(a) of the Energy Independence and Security Act of 2007, from $1 million to $1.1 million.