15 USC 2069 - Civil penalties

U.S Code last checked for updates: May 05, 2024

§ 2069.

Civil penalties

(a)

Amount of penalty

(1)

Any person who knowingly violates section 2068 of this title shall be subject to a civil penalty not to exceed $100,000 for each such violation. Subject to paragraph (2), a violation of section 2068(a)(1), (2), (4), (5), (6), (7), (8), (9), (10), or (11) of this title shall constitute a separate offense with respect to each consumer product involved, except that the maximum civil penalty shall not exceed $15,000,000 for any related series of violations. A violation of section 2068(a)(3) of this title shall constitute a separate violation with respect to each failure or refusal to allow or perform an act required thereby; and, if such violation is a continuing one, each day of such violation shall constitute a separate offense, except that the maximum civil penalty shall not exceed $15,000,000 for any related series of violations.

(2)

The second sentence of paragraph (1) of this subsection shall not apply to violations of paragraph (1) or (2) of section 2068(a) of this title—

(A)

if the person who violated such paragraphs is not the manufacturer or private labeler or a distributor of the products involved, and

(B)

if such person did not have either (i) actual knowledge that his distribution or sale of the product violated such paragraphs or (ii) notice from the Commission that such distribution or sale would be a violation of such paragraphs.

(3)

(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.

(b)

Relevant factors in determining amount of penalty

(c)

Compromise of penalty; deductions from penalty

(d)

“Knowingly” defined

(Pub. L. 92–573, § 20, Oct. 27, 1972, 86 Stat. 1225; Pub. L. 94–284, § 13(b), May 11, 1976, 90 Stat. 509; Pub. L. 95–631, § 6(c), Nov. 10, 1978, 92 Stat. 3745; Pub. L. 97–35, title XII, § 1211(c), Aug. 13, 1981, 95 Stat. 721; Pub. L. 101–608, title I, §§ 112(e), 115(a), Nov. 16, 1990, 104 Stat. 3117, 3118; Pub. L. 110–314, title II, § 217(a)(1), (b)(1)(A), Aug. 14, 2008, 122 Stat. 3058.)

cite as: 15 USC 2069