Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Rules and Regulations 2539 

1Public Law 114–74, sec. 701, 129 Stat. 599 

(2015). The Act amends the Federal Civil Penalties 

Inflation Adjustment Act (‘‘FCPIAA’’), Public Law 

101–410, 104 Stat. 890 (codified at 28 U.S.C. 2461 

note). 

2 81 FR 42476 (2016); 82 FR 8135 (2017); 83 FR 

2902 (2018); 84 FR 3980 (2019), 85 FR 2014 (2020). 

3 16 CFR 1.98. 

arrival time of the passenger’s original 

flight; and (3) at least 400 percent of the 

fare to the passenger’s destination or 

first stopover, or $1,550, whichever is 

lower, if the carrier does not offer 

alternate transportation that is planned 

to arrive at the airport of the passenger’s 

destination or first stopover less than 

two hours after the planned arrival time 

of the passenger’s original flight. 

0 to 1 hour arrival delay ................ No compensation. 

1 to 2 hour arrival delay ................ 200% of one-way fare (carriers may limit this amount to $775 if it is higher than $775).* 

Over 2 hours arrival delay ............ 400% of one-way fare (carriers may limit this amount to $1,550 if it is higher than $1,550).* 

* Nothing in the Department of Transportation’s regulation prohibits carriers from offering denied boarding compensations in an amount 

more than the amount calculated according to the chart above, or more than the denied boarding compensation liability limit amounts 

stated in the chart. 

International Transportation 

Passengers traveling from the United 

States to a foreign point who are denied 

boarding involuntarily from an oversold 

flight originating at a U.S. airport are 

entitled to: (1) No compensation if the 

carrier offers alternate transportation 

that is planned to arrive at the 

passenger’s destination or first stopover 

not later than one hour after the planned 

arrival time of the passenger’s original 

flight; (2) at least 200 percent of the fare 

to the passenger’s destination or first 

stopover, or $775, whichever is lower, if 

the carrier offers alternate transportation 

that is planned to arrive at the 

passenger’s destination or first stopover 

more than one hour but less than four 

hours after the planned arrival time of 

the passenger’s original flight; and (3) at 

least 400 percent of the fare to the 

passenger’s destination or first stopover, 

or $1,550, whichever is lower, if the 

carrier does not offer alternate 

transportation that is planned to arrive 

at the airport of the passenger’s 

destination or first stopover less than 

four hours after the planned arrival time 

of the passenger’s original flight. 

0 to 1 hour arrival delay ................ No compensation. 

1 to 4 hour arrival delay ................ 200% of one-way fare (carriers may limit this amount to $775 if it is higher than $775).** 

Over 4 hours arrival delay ............ 400% of one-way fare (carriers may limit this amount to $1,550 if it is higher than 1,550).** 

** Nothing in the Department of Transportation’s regulation prohibits carriers from offering denied boarding compensations in an 

amount more than the amount calculated according to the chart above, or more than the denied boarding compensation liability limit 

amounts stated in the chart. 

* * * * * 

PART 254—DOMESTIC BAGGAGE 

LIABILITY 

■ 7. The authority citation for 14 CFR 

part 254 continues to read as follows: 

Authority: 49 U.S.C. 40113, 41501, 41504, 

41510, 41702, and 41707. 

§ 254.4 [Amended] 

■ 8. Section 254.4 is amended by 

removing ‘‘$3,500’’ and adding ‘‘$3,800’’ 

in its place. 

§ 254.5 [Amended] 

■ 9. Section 254.5(b) is amended by 

removing ‘‘$3,500’’ and adding ‘‘$3,800’’ 

in its place. 

■ 10. Section 254.6 is revised to read as 

follows: 

§ 254.6 Periodic adjustments. 

The Department of Transportation 

will review the domestic baggage 

liability limit prescribed in this part 

every two years. The Department will 

use the Consumer Price Index for All 

Urban Consumers as of July of each 

review year to calculate the revised 

domestic baggage liability limit amount. 

The Department will use the following 

formula: $2500 × (a/b) rounded to the 

nearest $100, where a = July CPI–U of 

year of current adjustment and b = the 

CPI–U figure in December 1999 when 

the inflation adjustment provision was 

added to this part. 

Issued in Washington, DC, on this 15th day 

of December 2020, pursuant to authority 

delegated in 49 CFR 1.27(n). 

Steven G. Bradbury, 

General Counsel. 

[FR Doc. 2020–28001 Filed 1–12–21; 8:45 am] 

BILLING CODE 4910–9X–P 

FEDERAL TRADE COMMISSION 

16 CFR Part 1 

Adjustments to Civil Penalty Amounts 

AGENCY: Federal Trade Commission. 

ACTION: Final rule. 

SUMMARY: The Federal Trade 

Commission (‘‘FTC’’ or ‘‘Commission’’) 

is implementing adjustments to the civil 

penalty amounts within its jurisdiction 

to account for inflation, as required by 

law. 

DATES: Effective January 13, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Kenny A. Wright, Attorney (202–326– 

2907), or Marie Choi, Attorney (202– 

326–3368), Office of the General 

Counsel, FTC, 600 Pennsylvania 

Avenue NW, Washington, DC 20580. 

SUPPLEMENTARY INFORMATION: The 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 1 directs agencies to adjust the civil 

penalty maximums under their 

jurisdiction for inflation every January. 

Accordingly, the Commission issues 

annual adjustments to the maximum 

civil penalty amounts under its 

jurisdiction.2

Commission Rule § 1.98 sets forth the 

applicable civil penalty amounts for 

violations of certain laws enforced by 

the Commission.3 As directed by the 

FCPIAA, the Commission is issuing 

adjustments to increase these maximum 

civil penalty amounts to address 

inflation since its prior 2020 

adjustment. The following adjusted 

amounts will take effect on January 13, 

2021: 

• Section 7A(g)(1) of the Clayton Act, 

15 U.S.C. 18a(g)(1) (premerger filing 

notification violations under the HartScott-Rodino Improvements Act)— 

Increase from $43,280 to $43,792; 

• Section 11(l) of the Clayton Act, 15 

U.S.C. 21(l) (violations of cease and 

desist orders issued under Clayton Act 

section 11(b))—Increase from $22,994 to 

$23,266; 

• Section 5(l) of the FTC Act, 15 

U.S.C. 45(l) (unfair or deceptive acts or 

practices)—Increase from $43,280 to 

$43,792; 

• Section 5(m)(1)(A) of the FTC Act, 

15 U.S.C. 45(m)(1)(A) (unfair or 

2540 Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Rules and Regulations 

4 28 U.S.C. 2461 note (4). 

5 Id. (3), (5)(b); Office of Management and Budget, 

Memorandum M–21–10, Implementation of Penalty 

Inflation Adjustments for 2021, Pursuant to the 

Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015 (December 23, 2020), 

available at: https://www.whitehouse.gov/wpcontent/uploads/2020/12/M-21-10.pdf. 

6 28 U.S.C. 2461 note (6). 

7A regulatory flexibility analysis under the RFA 

is required only when an agency must publish a 

notice of proposed rulemaking for comment. See 5 

U.S.C. 603. 

deceptive acts or practices)—Increase 

from $43,280 to $43,792; 

• Section 5(m)(1)(B) of the FTC Act, 

15 U.S.C. 45(m)(1)(B) (unfair or 

deceptive acts or practices)—Increase 

from $43,280 to $43,792; 

• Section 10 of the FTC Act, 15 U.S.C. 

50 (failure to file required reports)— 

Increase from $569 to $576; 

• Section 5 of the Webb-Pomerene 

(Export Trade) Act, 15 U.S.C. 65 (failure 

by associations engaged solely in export 

trade to file required statements)— 

Increase from $569 to $576; 

• Section 6(b) of the Wool Products 

Labeling Act, 15 U.S.C. 68d(b) (failure 

by wool manufacturers to maintain 

required records)—Increase from $569 

to $576; 

• Section 3(e) of the Fur Products 

Labeling Act, 15 U.S.C. 69a(e) (failure to 

maintain required records regarding fur 

products)—Increase from $569 to $576; 

• Section 8(d)(2) of the Fur Products 

Labeling Act, 15 U.S.C. 69f(d)(2) (failure 

to maintain required records regarding 

fur products)—Increase from $569 to 

$576; 

• Section 333(a) of the Energy Policy 

and Conservation Act, 42 U.S.C. 6303(a) 

(knowing violations of EPCA sec. 332, 

including labeling violations)—Increase 

from $468 to $474; 

• Section 525(a) of the Energy Policy 

and Conservation Act, 42 U.S.C. 6395(a) 

(recycled oil labeling violations)— 

Increase from $22,994 to $23,266; 

• Section 525(b) of the Energy Policy 

and Conservation Act, 42 U.S.C. 6395(b) 

(willful violations of recycled oil 

labeling requirements)—Increase from 

$43,280 to $43,792; 

• Section 621(a)(2) of the Fair Credit 

Reporting Act, 15 U.S.C. 1681s(a)(2) 

(knowing violations of the Fair Credit 

Reporting Act)—Increase from $4,063 to 

$4,111; 

• Section 1115(a) of the Medicare 

Prescription Drug Improvement and 

Modernization Act of 2003, Public Law 

108–173, as amended by Public Law 

115–263, 21 U.S.C. 355 note (failure to 

comply with filing requirements)— 

Increase from $15,301 to $15,482; and 

• Section 814(a) of the Energy 

Independence and Security Act of 2007, 

42 U.S.C. 17304 (violations of 

prohibitions on market manipulation 

and provision of false information to 

Federal agencies)—Increase from 

$1,231,690 to $1,246,249. 

Calculation of Inflation Adjustments 

The FCPIAA, as amended, directs 

Federal agencies to adjust each civil 

monetary penalty under their 

jurisdiction for inflation in January of 

each year pursuant to a cost-of-living 

adjustment.4 The cost-of-living 

adjustment is based on the percent 

change between the U.S. Department of 

Labor’s Consumer Price Index for allurban consumers (‘‘CPI–U’’) for the 

month of October preceding the date of 

the adjustment, and the CPI–U for 

October of the prior year.5 Based on that 

formula, the cost-of-living adjustment 

multiplier for 2021 is 1.01182. The 

FCPIAA also directs that these penalty 

level adjustments should be rounded to 

the nearest dollar. Agencies do not have 

discretion over whether to adjust a 

maximum civil penalty, or the method 

used to determine the adjustment. 

The following chart illustrates the 

application of these adjustments to the 

civil monetary penalties under the 

Commission’s jurisdiction. 

CALCULATION OF ADJUSTMENTS TO MAXIMUM CIVIL MONETARY PENALTIES

Citation Description 2020 Penalty 

level 

Adjustment 

multiplier 

2021 Penalty 

level 

(rounded to the 

nearest dollar) 

16 CFR 1.98(a): 15 U.S.C. 18a(g)(1) .......... Premerger filing notification violations ........ $43,280 1.01182 $43,792 

16 CFR 1.98(b): 15 U.S.C. 21(l) ................. Violations of cease and desist orders ......... 22,994 1.01182 23,266 

16 CFR 1.98(c): 15 U.S.C. 45(l) .................. Unfair or deceptive acts or practices .......... 43,280 1.01182 43,792 

16 CFR 1.98(d): 15 U.S.C. 45(m)(1)(A) ...... Unfair or deceptive acts or practices .......... 43,280 1.01182 43,792 

16 CFR 1.98(e): 15 U.S.C. 45(m)(1)(B) ...... Unfair or deceptive acts or practices .......... 43,280 1.01182 43,792 

16 CFR 1.98(f): 15 U.S.C. 50 ...................... Failure to file required reports ..................... 569 1.01182 576 

16 CFR 1.98(g): 15 U.S.C. 65 ..................... Failure to file required statements .............. 569 1.01182 576 

16 CFR 1.98(h): 15 U.S.C. 68d(b) .............. Failure to maintain required records ........... 569 1.01182 576 

16 CFR 1.98(i): 15 U.S.C. 69a(e) ............... Failure to maintain required records ........... 569 1.01182 576 

16 CFR 1.98(j): 15 U.S.C. 69f(d)(2) ............ Failure to maintain required records ........... 569 1.01182 576 

16 CFR 1.98(k): 42 U.S.C. 6303(a) ............ Knowing violations ....................................... 468 1.01182 474 

16 CFR 1.98(l): 42 U.S.C. 6395(a) ............. Recycled oil labeling violations ................... 22,994 1.01182 23,266 

16 CFR 1.98(l): 42 U.S.C. 6395(b) ............. Willful violations ........................................... 43,280 1.01182 43,792 

16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2) ..... Knowing violations ....................................... 4,063 1.01182 4,111 

16 CFR 1.98(n): 21 U.S.C. 355 note .......... Non-compliance with filing requirements .... 15,301 1.01182 15,482 

16 CFR 1.98(o): 42 U.S.C. 17304 ............... Market manipulation or provision of false 

information to Federal agencies.

1,231,690 1.01182 1,246,249 

Effective Dates of New Penalties 

These new penalty levels apply to 

civil penalties assessed after the 

effective date of the applicable 

adjustment, including civil penalties 

whose associated violation predated the 

effective date.6 These adjustments do 

not retrospectively change previously 

assessed or enforced civil penalties that 

the FTC is actively collecting or has 

collected. 

Procedural Requirements 

The FCPIAA, as amended, directs 

agencies to adjust civil monetary 

penalties through rulemaking and to 

publish the required inflation 

adjustments in the Federal Register, 

notwithstanding section 553 of title 5, 

United States Code. Pursuant to this 

congressional mandate, prior public 

notice and comment under the APA and 

a delayed effective date are not required. 

For this reason, the requirements of the 

Regulatory Flexibility Act (‘‘RFA’’) also 

do not apply.7 Further, this rule does 

not contain any collection of 

Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Rules and Regulations 2541 

1Under the Federal Civil Penalties Inflation 

Adjustment Act of 1990, a penalty is a civil 

monetary penalty if (among other things) it is for 

a specific monetary amount or has a maximum 

amount specified by Federal law. Title IV also 

provides (in section 4007) for penalties for late 

payment of premiums, but those penalties are 

neither in a specified amount nor subject to a 

specified maximum amount. 

information requirements as defined by 

the Paperwork Reduction Act of 1995 as 

amended. 44 U.S.C. 3501 et seq. 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the Office of 

Information and Regulatory Affairs 

designated this rule as not a ‘‘major 

rule,’’ as defined by 5 U.S.C. 804(2). 

List of Subjects in 16 CFR Part 1 

Administrative practice and 

procedure, Penalties, Trade practices. 

Text of Amendments 

For the reasons set forth in the 

preamble, the Federal Trade 

Commission amends title 16, chapter I, 

subchapter A, of the Code of Federal 

Regulations, as follows: 

PART 1—GENERAL PROCEDURES 

Subpart L—Civil Penalty Adjustments 

Under the Federal Civil Penalties 

Inflation Adjustment Act of 1990, as 

Amended 

■ 1. The authority citation for part 1, 

subpart L, continues to read as follows: 

Authority: 28 U.S.C. 2461 note. 

■ 2. Revise § 1.98 to read as follows: 

§ 1.98 Adjustment of civil monetary 

penalty amounts. 

This section makes inflation 

adjustments in the dollar amounts of 

civil monetary penalties provided by 

law within the Commission’s 

jurisdiction. The following maximum 

civil penalty amounts apply only to 

penalties assessed after January 13, 

2021, including those penalties whose 

associated violation predated January 

13, 2021. 

(a) Section 7A(g)(1) of the Clayton 

Act, 15 U.S.C. 18a(g)(1)—$43,792; 

(b) Section 11(l) of the Clayton Act, 15 

U.S.C. 21(l)—$23,266; 

(c) Section 5(l) of the FTC Act, 15 

U.S.C. 45(l)—$43,792; 

(d) Section 5(m)(1)(A) of the FTC Act, 

15 U.S.C. 45(m)(1)(A)—$43,792; 

(e) Section 5(m)(1)(B) of the FTC Act, 

15 U.S.C. 45(m)(1)(B)—$43,792; 

(f) Section 10 of the FTC Act, 15 

U.S.C. 50—$576; 

(g) Section 5 of the Webb-Pomerene 

(Export Trade) Act, 15 U.S.C. 65—$576; 

(h) Section 6(b) of the Wool Products 

Labeling Act, 15 U.SC. 68d(b)—$576; 

(i) Section 3(e) of the Fur Products 

Labeling Act, 15 U.S.C. 69a(e)—$576; 

(j) Section 8(d)(2) of the Fur Products 

Labeling Act, 15 U.S.C. 69f(d)(2)—$576; 

(k) Section 333(a) of the Energy Policy 

and Conservation Act, 42 U.S.C. 

6303(a)—$474; 

(l) Sections 525(a) and (b) of the 

Energy Policy and Conservation Act, 42 

U.S.C. 6395(a) and (b), respectively— 

$23,266 and $43,792, respectively; 

(m) Section 621(a)(2) of the Fair 

Credit Reporting Act, 15 U.S.C. 

1681s(a)(2)—$4,111; 

(n) Section 1115(a) of the Medicare 

Prescription Drug Improvement and 

Modernization Act of 2003, Public Law 

108–173, as amended by Public Law 

115–263, 21 U.S.C. 355 note—$15,482; 

(o) Section 814(a) of the Energy 

Independence and Security Act of 2007, 

42 U.S.C. 17304—$1,246,249; and 

(p) Civil monetary penalties 

authorized by reference to the Federal 

Trade Commission Act under any other 

provision of law within the jurisdiction 

of the Commission—refer to the 

amounts set forth in paragraphs (c), (d), 

(e) and (f) of this section, as applicable. 

By direction of the Commission. 

April J. Tabor, 

Acting Secretary. 

[FR Doc. 2021–00483 Filed 1–12–21; 8:45 am] 

BILLING CODE 6750–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4071 and 4302 

RIN 1212–AB45 

Adjustment of Civil Penalties for 

Inflation 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: The Pension Benefit Guaranty 

Corporation is required to amend its 

regulations annually to adjust for 

inflation the maximum civil penalty for 

failure to provide certain notices or 

other material information and for 

failure to provide certain multiemployer 

plan notices. 

DATES: 

Effective date: This rule is effective on 

January 13, 2021. 

Applicability date: The increases in 

the civil monetary penalties under 

sections 4071 and 4302 of the Employee 

Retirement Income Security Act 

provided for in this rule apply to such 

penalties assessed after January 13, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Gregory Katz (katz.gregory@pbgc.gov), 

Attorney, Regulatory Affairs Division, 

Pension Benefit Guaranty Corporation, 

1200 K Street NW, Washington, DC 

20005–4026; 202–229–3829. (TTY users 

may call the Federal relay service tollfree at 800–877–8339 and ask to be 

connected to 202–229–3829.) 

SUPPLEMENTARY INFORMATION: 

Executive Summary 

Purpose of the Regulatory Action 

This rule is needed to carry out the 

requirements of the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015 and Office of 

Management and Budget guidance M– 

21–10. The rule adjusts, as required for 

2021, the maximum civil penalties 

under 29 CFR 4071 and 29 CFR 4302 

that the Pension Benefit Guaranty 

Corporation (PBGC) may assess for 

failure to provide certain notices or 

other material information and certain 

multiemployer plan notices. 

PBGC’s legal authority for this action 

comes from the Federal Civil Penalties 

Inflation Adjustment Act of 1990 as 

amended by the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 and from sections 

4002(b)(3), 4071, and 4302 of the 

Employee Retirement Income Security 

Act of 1974 (ERISA). 

Major Provisions of the Regulatory 

Action 

This rule adjusts as required by law 

the maximum civil penalties that PBGC 

may assess under sections 4071 and 

4302 of ERISA. The new maximum 

amounts are $2,259 for section 4071 

penalties and $301 for section 4302 

penalties. 

Background 

PBGC administers title IV of ERISA. 

Title IV has two provisions that 

authorize PBGC to assess civil monetary 

penalties.1 Section 4302, added to 

ERISA by the Multiemployer Pension 

Plan Amendments Act of 1980, 

authorizes PBGC to assess a civil 

penalty of up to $100 a day for failure 

to provide a notice under subtitle E of 

title IV of ERISA (dealing with 

multiemployer plans). Section 4071, 

added to ERISA by the Omnibus Budget 

Reconciliation Act of 1987, authorizes 

PBGC to assess a civil penalty of up to 

$1,000 a day for failure to provide a 

notice or other material information 

under subtitles A, B, and C of title IV 

and sections 303(k)(4) and 306(g)(4) of 

title I of ERISA.