U.S Code last checked for updates: Apr 27, 2024
All TitlesTitle 15Chapter 25
§ 1194.
Administration and enforcement
(a)
Enforcement under Federal Trade Commission Act provisions; civil action to enforce standard or regulation
(b)
Application of Federal Trade Commission Act provisions
(c)
Rules and regulations
(d)
Inspection and analysis of products; cooperation with other governmental entities
The Commission is authorized to—
(1)
cause inspections, analyses, tests, and examinations to be made of any product, fabric or related material which it has reason to believe falls within the prohibitions of this chapter; and
(2)
cooperate on matters related to the purposes of this chapter with any department or agency of the Government; with any State or territory or with the District of Columbia or the Commonwealth of Puerto Rico; or with any department, agency, or political subdivision thereof; or with any person.
(e)
Penalties
(1)
Any person who knowingly violates a regulation or standard under section 1193 of this title shall be subject to a civil penalty not to exceed $100,000 for each such violation, except that the maximum civil penalty shall not exceed $15,000,000 for any related series of violations.
(2)
In determining the amount of any penalty to be sought upon commencing an action seeking to assess a penalty for a violation of a regulation or standard under section 1193 of this title, the Commission shall consider the nature, circumstances, extent, and gravity of the violations, the severity of the risk of injury, the occurrence or absence of injury, the appropriateness of such penalty in relation to the size of the business of the person charged, and such other factors as appropriate.
(3)
Any civil penalty under this subsection may be compromised by the Commission. In determining the amount of such penalty or whether it should be remitted or mitigated, and in what amount, the Commission shall consider the nature, circumstances, extent, and gravity of the violations, the appropriateness of such penalty to the size of the business of the persons charged, the severity of the risk of injury, and 
(4)
As used in paragraph (1), the term “knowingly” means (A) having actual knowledge, or (B) the presumed having of knowledge deemed to be possessed by a reasonable person who acts in the circumstances, including knowledge obtainable upon the exercise of due care to ascertain the truth of representations.
(5)
(A)
The maximum penalty amounts authorized in paragraph (1) shall be adjusted for inflation as provided in this paragraph.
(B)
Not later than December 1, 2011, and December 1 of each fifth calendar year thereafter, the Commission shall prescribe and publish in the Federal Register a schedule of maximum authorized penalties that shall apply for violations that occur after January 1 of the year immediately following such publication.
(C)
The schedule of maximum authorized penalties shall be prescribed by increasing each of the amounts referred to in paragraph (1) by the cost-of-living adjustment for the preceding five years. Any increase determined under the preceding sentence shall be rounded to—
(i)
in the case of penalties greater than $1,000 but less than or equal to $10,000, the nearest multiple of $1,000;
(ii)
in the case of penalties greater than $10,000 but less than or equal to $100,000, the nearest multiple of $5,000;
(iii)
in the case of penalties greater than $100,000 but less than or equal to $200,000, the nearest multiple of $10,000; and
(iv)
in the case of penalties greater than $200,000, the nearest multiple of $25,000.
(D)
For purposes of this subsection:
(i)
The term “Consumer Price Index” means the Consumer Price Index for all-urban consumers published by the Department of Labor.
(ii)
The term “cost-of-living adjustment for the preceding five years” means the percentage by which—
(I)
the Consumer Price Index for the month of June of the calendar year preceding the adjustment; exceeds
(II)
the Consumer Price Index for the month of June preceding the date on which the maximum authorized penalty was last adjusted.
(June 30, 1953, ch. 164, § 5, 67 Stat. 112; Pub. L. 90–189, § 4, Dec. 14, 1967, 81 Stat. 570; Pub. L. 101–608, title I, §§ 115(c), 118(b), Nov. 16, 1990, 104 Stat. 3120, 3122; Pub. L. 110–314, title II, § 217(a)(3), (b)(1)(C), Aug. 14, 2008, 122 Stat. 3058, 3059.)
cite as: 15 USC 1194
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