[Federal Register: January 9, 2009 (Volume 74, Number 6)]
[Rules and Regulations]               
[Page 857-858]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ja09-2]                         

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FEDERAL TRADE COMMISSION

16 CFR Part 1

 
Federal Civil Penalties Inflation Adjustment Act

AGENCY: Federal Trade Commission (FTC).

ACTION: Final rule amendments.

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SUMMARY: The FTC is making adjustments to certain civil penalty amounts 
within its jurisdiction, as required by law. These adjustments reflect 
inflation since the penalty amounts were last adjusted.

EFFECTIVE DATE: February 9, 2009.

FOR FURTHER INFORMATION CONTACT: Kathleen R. Johnson, Attorney, Office 
of General Counsel, FTC, 600 Pennsylvania Avenue, NW, Washington, DC 
20580, (202) 326-2869, kjohnson2@ftc.gov.

SUPPLEMENTARY INFORMATION: As required at least once every four years 
by the Federal Civil Penalties Inflation Adjustment Act of 1990 
(FCPIAA), 28 U.S.C. 2461 note, as amended by the Debt Collection 
Improvement Act of 1996, Pub. L. 104-134, 31001(s)(1), 110 Stat. 1321-
373, the FTC is making certain regulatory adjustments to civil penalty 
amounts within its jurisdiction. The civil penalty amounts adjusted by 
the FTC are set forth in Commission Rule 1.98, 16 CFR 1.98. The FTC 
published the original adjustments in 1996. See 61 FR 54548 (Oct. 21, 
1996), 55840 (Oct. 29, 1996). No adjustments were warranted under the 
law in 2000. See 65 FR 69665 (Nov. 20, 2000). The FTC published 
adjustments to civil penalties under the Clayton Act section 11(l) and 
the Energy Policy and Conservation Act section 525(a) in 2004. See 69 
FR 76611 (Dec. 22, 2004).
    Adjustments are based on the increase in the Consumer Price Index 
(CPI) between June of the year in which the prior adjustment was made 
and June of the year preceding the year in which the adjustment is 
being made. Thus, for civil penalties adjusted in 2004, the relevant 
CPI period is between June, 2004 and June, 2007. Within that time 
frame, the CPI has increased from 189.7 to 208.352, or 9.8%. Applying 
this percentage increase to currently adjusted civil penalty amounts, 
the FTC is adjusting civil penalty amounts currently set at $6,500 
under two statutes: the Clayton Act section 11(l), for violations of 
cease-and-desist orders issued under section 11(b) of that Act; and 
section 525(a) of the Energy Policy and Conservation Act, for recycled 
oil labeling violations. Each will be adjusted to $7,500, in accordance 
with the rounding rules of the adjustment statute.
    For civil penalties that were last adjusted in 1996, the relevant 
CPI period is between June, 1996 and June, 2007. During this period, 
the CPI increased from 156.7 to 208.352 for a total percentage increase 
of 32.96%. Applying this percentage increase to the civil penalties as 
they were adjusted in 1996 results in an increase from $11,000 to 
$16,000 for civil penalties in the following statutes: premerger 
notification violations under the Hart-Scott-Rodino Antitrust 
Improvements Act section 7A(g)(1), unfair or deceptive acts or 
practices under the FTC Act sections 5(l), (m)(1)(A) and (m)(1)(B), and 
energy conservation violations under the Energy Policy and Conservation 
Act section 525(b). Further, applying the CPI increase to credit 
reporting violations under the Fair Credit Reporting Act section 
621(a)(2) raises that penalty amount from $2,500 to $3,500.
    The FTC is amending Commission Rule 1.98 by modifying paragraphs 
(a) through (e), (l) and (m) and adding paragraph (n) to reflect these 
adjustments, which will become effective thirty days following 
publication.
    The FCPIAA rounding rules do not authorize the FTC at this time to 
increase the amounts of the other civil penalties within its 
jurisdiction. Increases in civil penalties of greater than $100 and 
less than or equal to $1,000 must be in $100 increments, and the 
increase in the CPI was not high enough to round up any adjustment to 
$100. Accordingly, all other paragraphs of Commission Rule 1.98 remain 
unchanged.

[[Page 858]]

    Likewise, the FTC is not adding new adjustments for other statutory 
civil penalty amounts that have been enacted since the last 
adjustments, such as the Energy Independence and Security Act of 2007 
section 814(a). This authority is too recent to warrant adjustments for 
inflation. Similarly, the FTC is not adjusting section 1115(a) of the 
Medicare Prescription Drug Improvement and Modernization Act of 2003 
because the amount of inflation since the inception of this authority 
is insufficient to warrant adjustment.
    In light of the ministerial nature of the adjustments, the public 
comment requirements of the Administrative Procedure Act (APA) do not 
apply to this action. 5 U.S.C. 553(b)(B) (exception when public comment 
is unnecessary). For this reason, the requirements of the Regulatory 
Flexibility Act also do not apply. 5 U.S.C. 603 and 604 (no regulatory 
flexibility analyses required where the APA does not require public 
comment).

List of Subjects for 16 CFR Part 1

    Administrative practice and procedure, Penalties, Trade practices.

0
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 by the Debt 
Collection Improvement Act of 1996

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 introductory text, paragraphs (a) through (e), (l) 
and (m) and add paragraph (n) 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 civil penalty amounts apply to violations 
occurring after February 9, 2009.
    (a) Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)--
$16,000;
    (b) Section 11(l) of the Clayton Act, 15 U.S.C. 21(l)--$7,500;
    (c) Section 5(l) of the FTC Act, 15 U.S.C. 45(l)--$16,000;
    (d) Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)--
$16,000;
    (e) Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)--
$16,000;
* * * * *
    (l) Sections 525(a) and (b) of the Energy Policy and Conservation 
Act, 42 U.S.C. 6395(a) and (b), respectively--$7,500 and $16,000, 
respectively;
    (m) Section 621(a)(2) of the Fair Credit Reporting Act, 15 U.S.C. 
1681s(a)(2)--$3,500; and
    (n) 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.

Richard C. Donohue,
Acting Secretary.
[FR Doc. E9-210 Filed 1-8-09; 8:45 am]

BILLING CODE 6750-01-S