FTC Announced Today that Inflation Adjustments in Civil Penalties Will Raise Penalties for Statutes Enforced by the FTC by 10 Percent.

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The Federal Trade Commission has announced today that inflation adjustments in civil penalties, required by the Debt Collection Improvement Act (DCIA) of 1996, will raise penalties for statutes enforced by the FTC by 10 percent. The increases will become effective Nov. 20, 1996, and will apply to violations occurring after that date.

In a Federal Register notice, published today, the Commission notes that the DCIA requires adjustments to be calculated using a specified formula, which limits the initial adjustment under each statutory provision to 10 percent of the current statutory civil penalty amount. Due to inflation since the civil penalties were last set or adjusted, the increase will, in every case, be the maximum 10 percent, the notice says.

The adjusted civil penalties are as follows:

  • Clayton Act, section 7A, adjusted from $10,000 to $11,000 per violation;
  • Clayton Act, section 11, adjusted from $5,000 to $5,500 per violation;
  • FTC Act, section 5, adjusted from $10,000 to $11,000 per violation;
  • FTC Act, section 10, adjusted from $100 to $110 per violation;
  • Webb-Pomerance (Export Trade) Act; Wool Products Labeling Act; Fur Products Labeling Act; Energy Policy and Conservation Act all adjusted from $100 to $110 per violation.
  • All other Commission statutes authorizing civil penalties by reference to the FTC Act are adjusted in accordance with the adjustments pertaining to that Act.

The Federal Register Notice states that since the Commission has no discretion in determining the amounts of the published adjustments, it is unnecessary to seek public comment.

The Commission vote to announce the increases in the Federal Register was 5-0.

Copies of the Federal Register Notice are available from the FTC’s Public Reference Branch, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-2222; TTY for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710. FTC news releases and other materials also are available on the Internet at the FTC’s World Wide Web site at: http://www.ftc.gov

Claudia Bourne Farrell

Office of Public Affairs

Alex Tang

Office of General Counsel

(FTC File No. P859 907)

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