The Federal Trade Commission has approved final amendments to Commission Rule 1.98 that adjust the maximum civil penalty dollar amounts for violations of 16 provisions of law the FTC enforces, as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The Act directs agencies to implement a “catch-up” inflation adjustment based on a prescribed formula. The new maximum civil penalty amounts will take effect on August 1, 2016.
The maximum civil penalty amount has increased from $16,000 to $40,000 for the following violations and others listed in the Federal Register Notice:
The Notice also notes that when the Commission seeks civil penalties, it is mindful of the statutory criteria under section 5(m) of the FTC Act that courts must apply when determining the amount of the civil penalty for violations of that section such as the degree of culpability, any history of prior such conduct, ability to pay, and effect on ability to continue to do business. 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.
The Commission vote to publish the Federal Register Notice amending Commission Rule 1.98 was 3-0. (FTC File No. P072104; the staff contact is Kenny A. Wright, Office of the General Counsel, 202-326-2907)
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.
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