CPSC to Adjust Max Civil Penalties in 2012 for Inflation
The Consumer Product Safety Commission has issued a notice announcing that it will increase the maximum civil penalty amounts authorized under the Consumer Product Safety Act (CPSA), the Federal Hazardous Substances Act (FHSA), and the Flammable Fabrics Act (FFA)1 to account for inflation. The new maximum civil penalty amounts will apply to violations that occur after January 1, 2012.
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Max Penalties Will Be $100K for Each Violation, $15.15M for Series
The new maximum civil penalty amounts will be $100,000 for each violation (unchanged), and $15,150,000 for any related series of violations (from $15,000,000).
(CPSC’s actual inflation-adjusted calculations were $101,053 and $15,157,981 respectively, but CPSC’s statute on rounding resulted in the above amounts.)
CPSIA Greatly Increased Penalty Levels, Reset 5 Year Update
Starting August 14, 2009, the Consumer Product Safety Improvement Act of 2008 (CPSIA) significantly increased the maximum civil penalty amounts from $8,000 to $100,000 for each violation and from $1,825,000 to $15,000,000 for any related series of violations.
The CPSIA also changed the starting date to December 1, 2011 on which CPSC must prescribe and publish every five years in the Federal Register the schedule of maximum authorized penalties. (A prior law directed CPSC to adjust the maximum civil penalty amounts periodically for inflation.)
1These acts are CPSC’s underlying statutes. The penalties also apply to any violations of the CPSIA as it amended the CPSA, FHSA, and FFA.
(See ITT’s Online Archives 10033115 for summary of CPSC’s March 2010 final rule on CPSC's interpretation of the statutory factors it considers in determining civil penalty amounts for violations of the prohibited acts in the CPSA, FFA, and FHSA.)
CPSC contact - Amy Colvin (301) 504-7639
(FR Pub 11/18/11)