ARTICLE
25 July 2016

FTC Approves Increasing Civil Penalty Amounts

TP
Troutman Pepper Locke LLP

Contributor

Troutman Pepper Locke helps clients solve complex legal challenges and achieve their business goals in an ever-changing global economy. With more than 1,600 attorneys in 30+ offices, the firm serves clients in all major industry sectors, with particular depth in energy, financial services, health care and life sciences, insurance and reinsurance, private equity, and real estate. Learn more at troutman.com.
The FTC recently approved increases to the maximum civil penalty amounts available for violations of statutes subject to FTC enforcement.
United States Consumer Protection

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.

The Troutman Sanders’ Consumer Financial Services Law Monitor blog offers timely updates regarding the financial services industry to inform you of recent changes in the law, upcoming regulatory deadlines and significant judicial opinions that may impact your business. To view the blog, click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More