Adjustments to Civil Penalty Amounts (Federal Register, January 10, 2024)
Summary
Final rule from the Farm Credit System Insurance Corporation, printed at page 1445 of Federal Register Vol. 89, No. 7 (January 10, 2024), adjusting its civil money penalties for inflation under 12 CFR Part 1411. The adjustments are required by the 2015 amendments to the Federal Civil Penalties Inflation Adjustment Act of 1990, and the rule says agencies have no discretion over whether, by how much or by what method to adjust. The new amounts apply to penalties assessed on or after January 15, 2024. Under section 5.65(c) of the Farm Credit Act, an insured bank that willfully fails to file a certified statement or pay a required premium is subject to a penalty. The rule says notice and comment are not required under the Administrative Procedure Act.
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Full text
Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations 1445
FARM CREDIT SYSTEM INSURANCE FCSIC must enact regulations that required by the 2015 Act, results in a
CORPORATION annually adjust its CMPs pursuant to new penalty amount of $257.
the inflation adjustment formula of the
12 CFR Part 1411 IV. Notice and Comment Not Required
amended Inflation Adjustment Act and
by Administrative Procedure Act
rounded using a method prescribed by
RIN 3055–AAZZ In accordance with the 2015 Act,
the Inflation Adjustment Act. The new
amounts are applicable to penalties Federal agencies shall adjust civil
Rules of Practice and Procedure;
assessed on or after January 15, 2024, for monetary penalties ‘‘notwithstanding’’
Adjusting Civil Money Penalties for
conduct occurring on or after November section 553 of the Administrative
Inflation
2, 2015. Agencies do not have discretion Procedures Act. This means that public
AGENCY: Farm Credit System Insurance in choosing whether to adjust a CMP, by procedure generally required for agency
Corporation. how much to adjust a CMP, or the rulemaking—notice, an opportunity for
ACTION: Final rule. methods used to determine the comment, and a delay in effective
adjustment. date—is not required for agencies to
SUMMARY: This rule implements issue regulations implementing the
inflation adjustments to civil money II. CMPs Imposed Pursuant to Section annual adjustment.
penalties (CMPs) that the Farm Credit 5.65 of the Farm Credit Act
List of Subjects in 12 CFR Part 1411
System Insurance Corporation (FCSIC) First, section 5.65(c) of the Farm
may impose under the Farm Credit Act Banks, Banking, Civil money
Credit Act, as amended (Act), provides
of 1971, as amended. These adjustments penalties, Penalties.
that any insured Farm Credit System
are required by 2015 amendments to the bank that willfully fails or refuses to file For the reasons stated in the
Federal Civil Penalties Inflation any certified statement or pay any preamble, part 1411 of chapter XIV, title
Adjustment Act of 1990. required premium shall be subject to a 12 of the Code of Federal Regulations is
DATES: Effective date: This regulation is penalty of not more than $100 for each amended as follows:
effective on January 10, 2024. day that such violations continue, PART 1411—RULES OF PRACTICE
Applicability date: The adjusted which penalty FCSIC may recover for its AND PROCEDURE
amounts of civil money penalties in this use.3 Second, section 5.65(d) of the Act
rule are applicable to penalties assessed provides that, except with the prior ■ 1. The authority citation for part 1411
on or after January 15, 2024, for conduct written consent of the Farm Credit continues to read as follows:
occurring on or after November 2, 2015. Administration, it shall be unlawful for Authority: 12 U.S.C. 2277a–7(10), 2277a–
FOR FURTHER INFORMATION CONTACT: any person convicted of any criminal 14© and (d); 28 U.S.C. 2461 note.
Lynn M. Powalski, General Counsel, offense involving dishonesty or a breach ■ 2. Revise § 1411.1 to read as follows:
Farm Credit System Insurance of trust to serve as a director, officer, or
Corporation, 1501 Farm Credit Drive, employee of any System institution.4 § 1411.1 Inflation adjustment of civil
McLean, Virginia 22102, (703) 883– For each willful violation of section money penalties for failure to file a certified
4380, TTY (703) 883–4390. 5.65(d), the institution involved shall be statement, pay any premium required or
subject to a penalty of not more than obtain approval before employment of
SUPPLEMENTARY INFORMATION: persons convicted of criminal offenses.
$100 for each day during which the
I. Background violation continues, which FCSIC may In accordance with the Federal Civil
recover for its use. Penalties Inflation Adjustment Act of
The Federal Civil Penalties Inflation 1990, as amended, a civil money
Adjustment Act Improvements Act of FCSIC’s current § 1411.1 provides that
penalty imposed pursuant to section
2015 (the 2015 Act) amended the FCSIC can impose a maximum penalty
5.65(c) or (d) of the Farm Credit Act of
Federal Civil Penalties Inflation of $249 per day for a violation under
1971, as amended, shall not exceed
Adjustment Act of 1990 (the Inflation section 5.65(c) and (d) of the Act.
$257 per day for each day the violation
Adjustment Act) 1 to improve the III. Required Adjustments continues.
effectiveness of civil monetary penalties
and to maintain their deterrent effect. The 2015 Act requires agencies to Dated: January 5, 2024.
The Inflation Adjustment Act provides make annual adjustments for inflation. Ashley Waldron,
for the regular evaluation of CMPs and Annual inflation adjustments are based Secretary to the Board, Farm Credit System
requires FCSIC, and every other Federal on the percent change between the Insurance Corporation.
agency with authority to impose CMPs, October Consumer Price Index for all [FR Doc. 2024–00339 Filed 1–9–24; 8:45 am]
to ensure that CMPs continue to Urban Consumers (CPI–U) preceding the BILLING CODE 6710–01–P
maintain their deterrent values.2 date of the adjustment, and the prior
year’s October CPI–U. Consumer Price
1 Public Law 101–410, 104 Stat. 890 (Oct. 5, Index (CPI–U) for the month of October FEDERAL TRADE COMMISSION
1990), as amended by Public Law 104–134, title III, 2023, not seasonally adjusted, the cost-
sec. 31001(s)(1), 110 Stat. 1321–373 (Apr. 26, 1996); 16 CFR Part 1
Public Law 105–362, title XIII, sec. 1301(a), 112
of-living adjustment multiplier for 2024
Stat. 3293 (Nov. 10, 1998); Public Law 114–74, title is 1.03241.5 Multiplying 1.03241 times
VII, sec. 701(b), 129 Stat. 599 (Nov. 2, 2015), the current penalty amount of $249, Adjustments to Civil Penalty Amounts
codified at 28 U.S.C. 2461 note. after rounding to the nearest dollar as
2 Under the amended Inflation Adjustment Act, a
AGENCY: Federal Trade Commission.
CMP is defined as any penalty, fine, or other ACTION: Final rule.
3 12 U.S.C. 2277a–14(c).
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sanction that: (1) Either is for a specific monetary
amount as provided by Federal law or has a 4 12 U.S.C. 2277a–14(d). SUMMARY: The Federal Trade
maximum amount provided for by Federal law; (2) 5 See Office of Mgmt. & Budget, Exec. Office of Commission (‘‘FTC’’ or ‘‘Commission’’)
is assessed or enforced by an agency pursuant to the President, OMB Memorandum No. M–24–07, is implementing adjustments to the civil
Federal law; and (3) is assessed or enforced Implementation of Penalty Inflation Adjustments
pursuant to an administrative proceeding or a civil for 2024, Pursuant to the Federal Civil Penalties
penalty amounts within its jurisdiction
action in the Federal courts. All three requirements Inflation Adjustment Act Improvements Act of 2015 to account for inflation, as required by
must be met for a fine to be considered a CMP. (December 19, 2023). law.
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1446 Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations
DATES: Effective January 10, 2024. deceptive acts or practices)—Increase (knowing violations of the Fair Credit
FOR FURTHER INFORMATION CONTACT: from $50,120 to $51,744; Reporting Act)—Increase from $4,705 to
Marie Choi, Attorney (202–326–3368), • Section 5(m)(1)(B) of the FTC Act, $4,857;
Office of the General Counsel, Federal 15 U.S.C. 45(m)(1)(B) (unfair or • Section 1115(a) of the Medicare
Trade Commission, 600 Pennsylvania deceptive acts or practices)—Increase Prescription Drug Improvement and
Avenue NW, Washington, DC 20580. from $50,120 to $51,744; Modernization Act of 2003, Public Law
• Section 10 of the FTC Act, 15 U.S.C. 108–173, as amended by Public Law
SUPPLEMENTARY INFORMATION: The
50 (failure to file required reports)— 115–263, 21 U.S.C. 355 note (failure to
Federal Civil Penalties Inflation Increase from $659 to $680; comply with filing requirements)—
Adjustment Act Improvements Act • Section 5 of the Webb-Pomerene Increase from $17,719 to $18,293; and
(‘‘FCPIAA’’) of 2015 1 directs agencies to (Export Trade) Act, 15 U.S.C. 65 (failure • Section 814(a) of the Energy
adjust the civil penalty maximums by associations engaged solely in export Independence and Security Act of 2007,
under their jurisdiction for inflation trade to file required statements)— 42 U.S.C. 17304 (violations of
every January. Accordingly, the Increase from $659 to $680; prohibitions on market manipulation
Commission issues annual adjustments • Section 6(b) of the Wool Products and provision of false information to
to the maximum civil penalty amounts Labeling Act, 15 U.S.C. 68d(b) (failure federal agencies)—Increase from
under its jurisdiction.2 by wool manufacturers to maintain $1,426,319 to $1,472,546.
Commission Rule 1.98 sets forth the required records)—Increase from $659
applicable civil penalty amounts for to $680; Calculation of Inflation Adjustments
violations of certain laws enforced by • Section 3(e) of the Fur Products The FCPIAA, as amended, directs
the Commission.3 As directed by the Labeling Act, 15 U.S.C. 69a(e) (failure to federal agencies to adjust each civil
FCPIAA, the Commission is issuing maintain required records regarding fur monetary penalty under their
adjustments to increase these maximum products)—Increase from $659 to $680; jurisdiction for inflation in January of
civil penalty amounts to address • Section 8(d)(2) of the Fur Products each year pursuant to a cost-of-living
inflation since its prior 2023 Labeling Act, 15 U.S.C. 69f(d)(2) (failure adjustment.4 The cost-of-living
adjustment. The following adjusted to maintain required records regarding adjustment is based on the percent
amounts will take effect on January 10, fur products)—Increase from $659 to change between the U.S. Department of
2024: $680; Labor’s Consumer Price Index for all-
• Section 7A(g)(1) of the Clayton Act, • Section 333(a) of the Energy Policy urban consumers (‘‘CPI–U’’) for the
15 U.S.C. 18a(g)(1) (premerger filing and Conservation Act, 42 U.S.C. 6303(a) month of October preceding the date of
notification violations under the Hart- (knowing violations of EPCA § 332, the adjustment, and the CPI–U for
Scott-Rodino Improvements Act)— including labeling violations)—Increase October of the prior year.5 Based on that
Increase from $50,120 to $51,744; from $542 to $560; formula, the cost-of-living adjustment
• Section 11(l) of the Clayton Act, 15 • Section 525(a) of the Energy Policy multiplier for 2024 is 1.03241. The
U.S.C. 21(l) (violations of cease and and Conservation Act, 42 U.S.C. 6395(a) FCPIAA also directs that these penalty
desist orders issued under Clayton Act (recycled oil labeling violations)— level adjustments should be rounded to
section 11(b))—Increase from $26,628 to Increase from $26,628 to $27,491; the nearest dollar. Agencies do not have
$27,491; • Section 525(b) of the Energy Policy discretion over whether to adjust a
• Section 5(l) of the FTC Act, 15 and Conservation Act, 42 U.S.C. 6395(b) maximum civil penalty, or the method
U.S.C. 45(l) (unfair or deceptive acts or (willful violations of recycled oil used to determine the adjustment.
practices)—Increase from $50,120 to labeling requirements)—Increase from The following chart illustrates the
$51,744; $50,120 to $51,744; application of these adjustments to the
• Section 5(m)(1)(A) of the FTC Act, • Section 621(a)(2) of the Fair Credit civil monetary penalties under the
15 U.S.C. 45(m)(1)(A) (unfair or Reporting Act, 15 U.S.C. 1681s(a)(2) Commission’s jurisdiction.
CALCULATION OF ADJUSTMENTS TO MAXIMUM CIVIL MONETARY PENALTIES
2024 Penalty level
2023 Penalty Adjustment
Citation Description (rounded to the
level multiplier nearest dollar)
16 CFR 1.98(a): 15 U.S.C. 18a(g)(1) ........... Premerger filing notification violations ......... $50,120 1.03241 $51,744
16 CFR 1.98(b): 15 U.S.C. 21(l) .................. Violations of cease and desist orders .......... 26,628 1.03241 27,491
16 CFR 1.98(c): 15 U.S.C. 45(l) ................... Unfair or deceptive acts or practices ........... 50,120 1.03241 51,744
16 CFR 1.98(d): 15 U.S.C. 45(m)(1)(A) ....... Unfair or deceptive acts or practices ........... 50,120 1.03241 51,744
16 CFR 1.98(e): 15 U.S.C. 45(m)(1)(B) ....... Unfair or deceptive acts or practices ........... 50,120 1.03241 51,744
16 CFR 1.98(f): 15 U.S.C. 50 ....................... Failure to file required reports ...................... 659 1.03241 680
16 CFR 1.98(g): 15 U.S.C. 65 ...................... Failure to file required statements ............... 659 1.03241 680
16 CFR 1.98(h): 15 U.S.C. 68d(b) ............... Failure to maintain required records ............ 659 1.03241 680
16 CFR 1.98(i): 15 U.S.C. 69a(e) ................ Failure to maintain required records ............ 659 1.03241 680
16 CFR 1.98(j): 15 U.S.C. 69f(d)(2) ............. Failure to maintain required records ............ 659 1.03241 680
16 CFR 1.98(k): 42 U.S.C. 6303(a) ............. Knowing violations ........................................ 542 1.03241 560
16 CFR 1.98(l): 42 U.S.C. 6395(a) .............. Recycled oil labeling violations .................... 26,628 1.03241 27,491
16 CFR 1.98(l): 42 U.S.C. 6395(b) .............. Willful recycled oil labeling violations ........... 50,120 1.03241 51,744
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1 Public Law 114–74, 701, 129 Stat. 599 (2015). 86 FR 2539 (2021); 87 FR 1070 (2022); 88 FR 1499 5 Id. (3), (5)(b); Office of Management and Budget,
The Act amends the Federal Civil Penalties (2023). Memorandum M–24–07, Implementation of Penalty
Inflation Adjustment Act, Public Law 101–410, 104 3 16 CFR 1.98. Inflation Adjustments for 2024 (December 19,
Stat. 890 (codified at 28 U.S.C. 2461 note). 4 28 U.S.C. 2461 note at (4).
2023), available at: https://www.whitehouse.gov/wp-
2 81 FR 42476 (2016); 82 FR 8135 (2017); 83 FR content/uploads/2023/12/M-24-07-Implementation-
2902 (2018); 84 FR 3980 (2019), 85 FR 2014 (2020); of-Penalty-Inflation-Adjustments-for-2024.pdf.
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Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations 1447
CALCULATION OF ADJUSTMENTS TO MAXIMUM CIVIL MONETARY PENALTIES—Continued
2024 Penalty level
2023 Penalty Adjustment
Citation Description (rounded to the
level multiplier nearest dollar)
16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2) ...... Knowing violations ........................................ 4,705 1.03241 4,857
16 CFR 1.98(n): 21 U.S.C. 355 note ........... Non-compliance with filing requirements ..... 17,719 1.03241 18,293
16 CFR 1.98(o): 42 U.S.C. 17304 ................ Market manipulation or provision of false in- 1,426,319 1.03241 1,472,546
formation to federal agencies.
Effective Dates of New Penalties PART 1—GENERAL PROCEDURES 108–173, as amended by Public Law
115–263, 21 U.S.C. 355 note—$18,293;
These new penalty levels apply to Subpart L—Civil Penalty Adjustments (o) Section 814(a) of the Energy
civil penalties assessed after the Under the Federal Civil Penalties Independence and Security Act of 2007,
effective date of the applicable Inflation Adjustment Act of 1990, as 42 U.S.C. 17304—$1,472,546; and
adjustment, including civil penalties Amended (p) Civil monetary penalties
whose associated violation predated the authorized by reference to the Federal
effective date.6 These adjustments do ■ 1. The authority citation for subpart L Trade Commission Act under any other
not retrospectively change previously continues to read as follows: provision of law within the jurisdiction
assessed or enforced civil penalties that Authority: 28 U.S.C. 2461 note. of the Commission—refer to the
the FTC is actively collecting or has ■ 2. Revise § 1.98 to read as follows:
amounts set forth in paragraphs (c), (d),
collected. (e) and (f) of this section, as applicable.
§ 1.98 Adjustment of civil monetary By direction of the Commission.
Procedural Requirements penalty amounts.
Joel Christie,
The FCPIAA, as amended, directs This section makes inflation
Acting Secretary.
agencies to adjust civil monetary adjustments in the dollar amounts of
[FR Doc. 2024–00301 Filed 1–9–24; 8:45 am]
penalties through rulemaking and to civil monetary penalties provided by
BILLING CODE 6750–01–P
law within the Commission’s
publish the required inflation
jurisdiction. The following maximum
adjustments in the Federal Register,
civil penalty amounts apply only to
notwithstanding section 553 of title 5 in
penalties assessed after January 10, DEPARTMENT OF JUSTICE
the United States Code. Pursuant to this 2024, including those penalties whose
congressional mandate, prior public associated violation predated January 28 CFR Part 16
notice and comment under the APA and 10, 2024.
a delayed effective date are not required. [CPCLO Order No. 12–2021; AG Order No.
(a) Section 7A(g)(1) of the Clayton 5851–2024]
For this reason, the requirements of the Act, 15 U.S.C. 18a(g)(1)—$51,744;
Regulatory Flexibility Act (‘‘RFA’’) also (b) Section 11(l) of the Clayton Act, 15 RIN 1105–AB66
do not apply.7 Further, this rule does U.S.C. 21(l)—$27,491;
not contain any collection of (c) Section 5(l) of the FTC Act, 15 Privacy Act Regulations
information requirements as defined by U.S.C. 45(l)—$51,744;
AGENCY: United States Department of
the Paperwork Reduction Act of 1995 as (d) Section 5(m)(1)(A) of the FTC Act,
15 U.S.C. 45(m)(1)(A)—$51,744; Justice.
amended. 44 U.S.C. 3501 et seq.
(e) Section 5(m)(1)(B) of the FTC Act, ACTION: Final rule.
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Office of 15 U.S.C. 45(m)(1)(B)—$51,744;
SUMMARY: This rule amends the United
(f) Section 10 of the FTC Act, 15
Information and Regulatory Affairs States Department of Justice (‘‘DOJ’’ or
U.S.C. 50—$680;
designated this rule as not a ‘‘major ‘‘Department’’) Privacy Act
(g) Section 5 of the Webb-Pomerene
rule,’’ as defined by 5 U.S.C. 804(2). implementation regulations, including
(Export Trade) Act, 15 U.S.C. 65—$680;
its Privacy Act record access and
List of Subjects for 16 CFR Part 1 (h) Section 6(b) of the Wool Products
amendment procedures. Additionally,
Labeling Act, 15 U.SC. 68d(b)—$680;
Administrative practice and (i) Section 3(e) of the Fur Products this rule includes procedures regarding
procedure, Penalties, Trade practices. Labeling Act, 15 U.S.C. 69a(e)—$680; processing Privacy Act requests to
(j) Section 8(d)(2) of the Fur Products access or amend covered records, as
Text of Amendments designated under the Judicial Redress
Labeling Act, 15 U.S.C. 69f(d)(2)—$680;
(k) Section 333(a) of the Energy Policy Act of 2015, and expands protections on
For the reasons set forth in the the Department’s maintenance of Social
preamble, the Federal Trade and Conservation Act, 42 U.S.C.
6303(a)—$560; Security account numbers, in
Commission amends 16 CFR part 1 as accordance with the Social Security
follows: (l) Sections 525(a) and (b) of the
Energy Policy and Conservation Act, 42 Number Fraud Prevention Act of 2017.
U.S.C. 6395(a) and (b), respectively— DATES: This final rule is effective
$27,491 and $51,744, respectively; February 9, 2024.
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(m) Section 621(a)(2) of the Fair FOR FURTHER INFORMATION CONTACT:
6 28 U.S.C. 2461 note at (6). Credit Reporting Act, 15 U.S.C. Katherine Harman-Stokes, Acting
7 A regulatory flexibility analysis under the RFA 1681s(a)(2)—$4,857; Director, U.S. Department of Justice,
is required only when an agency must publish a (n) Section 1115(a) of the Medicare Office of Privacy and Civil Liberties,
notice of proposed rulemaking for comment. See 5 Prescription Drug Improvement and Two Constitution Square, 145 N Street
U.S.C. 603. Modernization Act of 2003, Public Law NE, Suite 8W.300, Washington, DC
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