Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC adjusts civil penalty maximums for inflation, (Jun 29, 2016)

By Linda O’Brien, J.D., LL.M.

The FTC has approved final amendments to Commission Rule 1.98 that adjust the maximum civil penalty dollar amounts, as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the agency announced today.

Commission Rule 1.98 sets forth the maximum civil penalty amounts for violations of laws enforced by the Commission that authorize civil penalties. The Act directs agencies to implement a "catch-up" inflation adjustment based on a prescribed formula.

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:

• Section 5(l) of the FTC Act (final Commission orders issued under section 5(b) of the FTC Act);

• Section 5(m)(1)(A) of the FTC Act (trade regulation rules issued by the Commission under section 18 of the FTC Act that address unfair or deceptive acts or practices); and

• Section 7A(g)(1) of the Clayton Act (premerger filing notification requirements under the Hart-Scott-Rodino Improvements Act).

The new maximum civil penalty amounts will take effect on August 1, 2016.

News: ConsumerProtection FederalTradeCommissionNews