Products Liability Law Daily Wrap Up, NOTICES—CIVIL PENALTIES—CPSC adjusts civil penalty amounts for inflation, (Dec 3, 2021)

By Susan Lasser, J.D.

The increase in the maximum civil penalties for violations of the Consumer Product Safety Act, the Flammable Fabrics Act, and the Federal Hazardous Substances Act will become effective after January 1, 2022.

In accordance with the Consumer Product Safety Improvement Act of 2008 (CPSIA), CPSC has updated the maximum civil penalty amounts for violations and any series of violations of three safety statutes. In 1990, Congress enacted statutory amendments to adjust the maximum civil penalty amounts authorized under the Consumer Product Safety Act (CPSA), the Federal Hazardous Substances Act (FHSA), and the Flammable Fabrics Act (FFA). On August 14, 2008, the CPSIA increased the maximum civil penalty amounts to $100,000 for each violation and $15,000,000 for any related series of violations. The CPSIA tied the effective date of the new amounts to the earlier of the date on which final regulations are issued or one year after August 14, 2008. The new amounts became effective on August 14, 2009. The CPSIA also revised the starting date, from December 1, 1994 to December 1, 2011, and December 1 of each fifth calendar year, thereafter, on which CPSC must prescribe and publish in the Federal Register, the schedule of maximum authorized penalties. As such, the CPSIA amended the CPSA, FHSA, and FFA to adjust the maximum civil penalty amounts periodically for inflation. On November 23, 2016, CPSC published increased maximum authorized civil penalty amounts of $110,000 for each violation and $16,025,000 for any related series of violations. Now, five years later and as calculated in accordance with the amendments, the new amounts are $120,000 for each violation and $17,150,000 for any related series of violations. The new amounts apply to violations that occur after January 1, 2022 (CPSC Notice of adjusted maximum civil penalty amounts, 86 FR 68244, December 1, 2021).

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