The FTC recently approved increases to the maximum civil penalty amounts available for violations of statutes subject to FTC enforcement.  The Federal Civil Penalties Inflation Adjustment Act of 2015 authorizes increases affecting sixteen statutes under FTC enforcement authority.

The amended maximums take effect August 1, 2016.

New maximum civil penalties for the following violations will apply:

  • Section 5(m)(1)(A) of the FTC Act, codified at 15 U.S.C. § 5(m)(1)(A), prohibiting unfair or deceptive trade practices:  Increased to $40,000
  • Section 5(m)(1)(B) of the FTC Act, codified at 15 U.S.C. § 5(m)(1)(B), prohibiting unfair or deceptive trade practices:  Increased to $40,000
  • Section 621(a)(2) of the Fair Credit Reporting Act, codified at 15 U.S.C. § 1681s(a)(2), prohibiting knowing violations of the FCRA:  Increased to $3,756The FTC also has a civil penalty leniency program for small businesses that establishes criteria the FTC will consider when determining the propriety of a penalty waiver or reduction for small businesses that are not in compliance with the law.

The full list of increased penalties is published in the Federal Register Notice.

The FTC also has a civil penalty leniency program for small businesses that establishes criteria the FTC will consider when determining the propriety of a penalty waiver or reduction for small businesses that are not in compliance with the law.