WASHINGTON, D.C. — The Federal Trade Commission (FTC) has announced inflation-adjusted increases to the maximum civil penalty amounts for violations of 16 provisions of law under its purview. This action is in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which mandates annual inflation adjustments based on a set formula.
Effective from their publication in the Federal Register on January 10, these adjustments have seen the maximum civil penalty amount increase from $50,120 to $51,744 for violations of several sections of the FTC Act, the Clayton Act, and the Energy Policy and Conservation Act. For violations of Section 10 of the FTC Act, the maximum civil penalty has risen from $659 to $680.
Perhaps most notably, the maximum civil penalty for violations of Section 814(a) of the Energy Independence and Security Act of 2007 has seen a significant hike, from $1,426,319 to $1,472,546. The adjusted maximum penalties for other violations within the FTC’s jurisdiction are detailed in the Federal Register notice.
The Commission’s unanimous vote to publish the Federal Register notice amending Commission Rule 1.98 reflects the agency’s commitment to maintaining the deterrent effect of civil penalties and promoting compliance with the law.
The implications of these adjustments are far-reaching. For businesses, these increased penalties underscore the importance of adherence to regulations under the FTC’s purview. The annual adjustment ensures that civil penalty amounts maintain their punitive bite and continue to serve as an effective deterrent against potential violations.
For consumers, these adjustments provide reassurance that regulatory breaches will not go unpunished, and they reinforce the FTC’s role as a watchdog protecting consumer interests.
The FTC’s announcement serves as a timely reminder for all entities operating under FTC-regulated laws to ensure their practices align with regulatory standards. The potential financial implications of non-compliance have been further heightened, underscoring the importance of maintaining robust compliance programs.
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