Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations 1445 

1Public Law 101–410, 104 Stat. 890 (Oct. 5, 

1990), as amended by Public Law 104–134, title III, 

sec. 31001(s)(1), 110 Stat. 1321–373 (Apr. 26, 1996); 

Public Law 105–362, title XIII, sec. 1301(a), 112 

Stat. 3293 (Nov. 10, 1998); Public Law 114–74, title 

VII, sec. 701(b), 129 Stat. 599 (Nov. 2, 2015), 

codified at 28 U.S.C. 2461 note. 

2Under the amended Inflation Adjustment Act, a 

CMP is defined as any penalty, fine, or other 

sanction that: (1) Either is for a specific monetary 

amount as provided by Federal law or has a 

maximum amount provided for by Federal law; (2) 

is assessed or enforced by an agency pursuant to 

Federal law; and (3) is assessed or enforced 

pursuant to an administrative proceeding or a civil 

action in the Federal courts. All three requirements 

must be met for a fine to be considered a CMP. 

3 12 U.S.C. 2277a–14(c). 

4 12 U.S.C. 2277a–14(d). 

5See Office of Mgmt. & Budget, Exec. Office of 

the President, OMB Memorandum No. M–24–07, 

Implementation of Penalty Inflation Adjustments 

for 2024, Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 2015 

(December 19, 2023). 

FARM CREDIT SYSTEM INSURANCE 

CORPORATION 

12 CFR Part 1411 

RIN 3055–AAZZ 

Rules of Practice and Procedure; 

Adjusting Civil Money Penalties for 

Inflation 

AGENCY: Farm Credit System Insurance 

Corporation. 

ACTION: Final rule. 

SUMMARY: This rule implements 

inflation adjustments to civil money 

penalties (CMPs) that the Farm Credit 

System Insurance Corporation (FCSIC) 

may impose under the Farm Credit Act 

of 1971, as amended. These adjustments 

are required by 2015 amendments to the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990. 

DATES: Effective date: This regulation is 

effective on January 10, 2024. 

Applicability date: The adjusted 

amounts of civil money penalties in this 

rule are applicable to penalties assessed 

on or after January 15, 2024, for conduct 

occurring on or after November 2, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Lynn M. Powalski, General Counsel, 

Farm Credit System Insurance 

Corporation, 1501 Farm Credit Drive, 

McLean, Virginia 22102, (703) 883– 

4380, TTY (703) 883–4390. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (the 2015 Act) amended the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990 (the Inflation 

Adjustment Act) 1 to improve the 

effectiveness of civil monetary penalties 

and to maintain their deterrent effect. 

The Inflation Adjustment Act provides 

for the regular evaluation of CMPs and 

requires FCSIC, and every other Federal 

agency with authority to impose CMPs, 

to ensure that CMPs continue to 

maintain their deterrent values.2

FCSIC must enact regulations that 

annually adjust its CMPs pursuant to 

the inflation adjustment formula of the 

amended Inflation Adjustment Act and 

rounded using a method prescribed by 

the Inflation Adjustment Act. The new 

amounts are applicable to penalties 

assessed on or after January 15, 2024, for 

conduct occurring on or after November 

2, 2015. Agencies do not have discretion 

in choosing whether to adjust a CMP, by 

how much to adjust a CMP, or the 

methods used to determine the 

adjustment. 

II. CMPs Imposed Pursuant to Section 

5.65 of the Farm Credit Act 

First, section 5.65(c) of the Farm 

Credit Act, as amended (Act), provides 

that any insured Farm Credit System 

bank that willfully fails or refuses to file 

any certified statement or pay any 

required premium shall be subject to a 

penalty of not more than $100 for each 

day that such violations continue, 

which penalty FCSIC may recover for its 

use.3 Second, section 5.65(d) of the Act 

provides that, except with the prior 

written consent of the Farm Credit 

Administration, it shall be unlawful for 

any person convicted of any criminal 

offense involving dishonesty or a breach 

of trust to serve as a director, officer, or 

employee of any System institution.4

For each willful violation of section 

5.65(d), the institution involved shall be 

subject to a penalty of not more than 

$100 for each day during which the 

violation continues, which FCSIC may 

recover for its use. 

FCSIC’s current § 1411.1 provides that 

FCSIC can impose a maximum penalty 

of $249 per day for a violation under 

section 5.65(c) and (d) of the Act. 

III. Required Adjustments 

The 2015 Act requires agencies to 

make annual adjustments for inflation. 

Annual inflation adjustments are based 

on the percent change between the 

October Consumer Price Index for all 

Urban Consumers (CPI–U) preceding the 

date of the adjustment, and the prior 

year’s October CPI–U. Consumer Price 

Index (CPI–U) for the month of October 

2023, not seasonally adjusted, the costof-living adjustment multiplier for 2024 

is 1.03241.5 Multiplying 1.03241 times 

the current penalty amount of $249, 

after rounding to the nearest dollar as 

required by the 2015 Act, results in a 

new penalty amount of $257. 

IV. Notice and Comment Not Required 

by Administrative Procedure Act 

In accordance with the 2015 Act, 

Federal agencies shall adjust civil 

monetary penalties ‘‘notwithstanding’’ 

section 553 of the Administrative 

Procedures Act. This means that public 

procedure generally required for agency 

rulemaking—notice, an opportunity for 

comment, and a delay in effective 

date—is not required for agencies to 

issue regulations implementing the 

annual adjustment. 

List of Subjects in 12 CFR Part 1411 

Banks, Banking, Civil money 

penalties, Penalties. 

For the reasons stated in the 

preamble, part 1411 of chapter XIV, title 

12 of the Code of Federal Regulations is 

amended as follows: 

PART 1411—RULES OF PRACTICE 

AND PROCEDURE 

■ 1. The authority citation for part 1411 

continues to read as follows: 

Authority: 12 U.S.C. 2277a–7(10), 2277a– 

14© and (d); 28 U.S.C. 2461 note. 

■ 2. Revise § 1411.1 to read as follows: 

§ 1411.1 Inflation adjustment of civil 

money penalties for failure to file a certified 

statement, pay any premium required or 

obtain approval before employment of 

persons convicted of criminal offenses. 

In accordance with the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended, a civil money 

penalty imposed pursuant to section 

5.65(c) or (d) of the Farm Credit Act of 

1971, as amended, shall not exceed 

$257 per day for each day the violation 

continues. 

Dated: January 5, 2024. 

Ashley Waldron, 

Secretary to the Board, Farm Credit System 

Insurance Corporation. 

[FR Doc. 2024–00339 Filed 1–9–24; 8:45 am] 

BILLING CODE 6710–01–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. 


lotter on DSK11XQN23PROD with RULES1
1446 Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations 

1Public Law 114–74, 701, 129 Stat. 599 (2015). 

The Act amends the Federal Civil Penalties 

Inflation Adjustment Act, 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); 

86 FR 2539 (2021); 87 FR 1070 (2022); 88 FR 1499 

(2023). 

3 16 CFR 1.98. 

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

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

Memorandum M–24–07, Implementation of Penalty 

Inflation Adjustments for 2024 (December 19, 

2023), available at: https://www.whitehouse.gov/wpcontent/uploads/2023/12/M-24-07-Implementationof-Penalty-Inflation-Adjustments-for-2024.pdf. 

DATES: Effective January 10, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Marie Choi, Attorney (202–326–3368), 

Office of the General Counsel, Federal 

Trade Commission, 600 Pennsylvania 

Avenue NW, Washington, DC 20580. 

SUPPLEMENTARY INFORMATION: The 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act 

(‘‘FCPIAA’’) 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 2023 

adjustment. The following adjusted 

amounts will take effect on January 10, 

2024: 

• 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 $50,120 to $51,744; 

• 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 $26,628 to 

$27,491; 

• Section 5(l) of the FTC Act, 15 

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

practices)—Increase from $50,120 to 

$51,744; 

• Section 5(m)(1)(A) of the FTC Act, 

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

deceptive acts or practices)—Increase 

from $50,120 to $51,744; 

• 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 $50,120 to $51,744; 

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

50 (failure to file required reports)— 

Increase from $659 to $680; 

• 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 $659 to $680; 

• 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 $659 

to $680; 

• 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 $659 to $680; 

• 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 $659 to 

$680; 

• Section 333(a) of the Energy Policy 

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

(knowing violations of EPCA § 332, 

including labeling violations)—Increase 

from $542 to $560; 

• Section 525(a) of the Energy Policy 

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

(recycled oil labeling violations)— 

Increase from $26,628 to $27,491; 

• 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 

$50,120 to $51,744; 

• 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 $4,705 to 

$4,857; 

• 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 $17,719 to $18,293; 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 

$1,426,319 to $1,472,546. 

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 2024 is 1.03241. 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 2023 Penalty 

level 

Adjustment 

multiplier 

2024 Penalty level 

(rounded to the 

nearest dollar) 

16 CFR 1.98(a): 15 U.S.C. 18a(g)(1) ........... Premerger filing notification violations ......... $50,120 1.03241 $51,744 

16 CFR 1.98(b): 15 U.S.C. 21(l) .................. Violations of cease and desist orders .......... 26,628 1.03241 27,491 

16 CFR 1.98(c): 15 U.S.C. 45(l) ................... Unfair or deceptive acts or practices ........... 50,120 1.03241 51,744 

16 CFR 1.98(d): 15 U.S.C. 45(m)(1)(A) ....... Unfair or deceptive acts or practices ........... 50,120 1.03241 51,744 

16 CFR 1.98(e): 15 U.S.C. 45(m)(1)(B) ....... Unfair or deceptive acts or practices ........... 50,120 1.03241 51,744 

16 CFR 1.98(f): 15 U.S.C. 50 ....................... Failure to file required reports ...................... 659 1.03241 680 

16 CFR 1.98(g): 15 U.S.C. 65 ...................... Failure to file required statements ............... 659 1.03241 680 

16 CFR 1.98(h): 15 U.S.C. 68d(b) ............... Failure to maintain required records ............ 659 1.03241 680 

16 CFR 1.98(i): 15 U.S.C. 69a(e) ................ Failure to maintain required records ............ 659 1.03241 680 

16 CFR 1.98(j): 15 U.S.C. 69f(d)(2) ............. Failure to maintain required records ............ 659 1.03241 680 

16 CFR 1.98(k): 42 U.S.C. 6303(a) ............. Knowing violations ........................................ 542 1.03241 560 

16 CFR 1.98(l): 42 U.S.C. 6395(a) .............. Recycled oil labeling violations .................... 26,628 1.03241 27,491 

16 CFR 1.98(l): 42 U.S.C. 6395(b) .............. Willful recycled oil labeling violations ........... 50,120 1.03241 51,744 


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Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations 1447 

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

CALCULATION OF ADJUSTMENTS TO MAXIMUM CIVIL MONETARY PENALTIES—Continued 

Citation Description 2023 Penalty 

level 

Adjustment 

multiplier 

2024 Penalty level 

(rounded to the 

nearest dollar) 

16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2) ...... Knowing violations ........................................ 4,705 1.03241 4,857 

16 CFR 1.98(n): 21 U.S.C. 355 note ........... Non-compliance with filing requirements ..... 17,719 1.03241 18,293 

16 CFR 1.98(o): 42 U.S.C. 17304 ................ Market manipulation or provision of false information to federal agencies.1,426,319 1.03241 1,472,546 

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 in 

the 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 

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 for 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 16 CFR part 1 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 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 10, 

2024, including those penalties whose 

associated violation predated January 

10, 2024. 

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

Act, 15 U.S.C. 18a(g)(1)—$51,744; 

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

U.S.C. 21(l)—$27,491; 

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

U.S.C. 45(l)—$51,744; 

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

15 U.S.C. 45(m)(1)(A)—$51,744; 

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

15 U.S.C. 45(m)(1)(B)—$51,744; 

(f) Section 10 of the FTC Act, 15 

U.S.C. 50—$680; 

(g) Section 5 of the Webb-Pomerene 

(Export Trade) Act, 15 U.S.C. 65—$680; 

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

Labeling Act, 15 U.SC. 68d(b)—$680; 

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

Labeling Act, 15 U.S.C. 69a(e)—$680; 

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

Labeling Act, 15 U.S.C. 69f(d)(2)—$680; 

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

and Conservation Act, 42 U.S.C. 

6303(a)—$560; 

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

Energy Policy and Conservation Act, 42 

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

$27,491 and $51,744, respectively; 

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

Credit Reporting Act, 15 U.S.C. 

1681s(a)(2)—$4,857; 

(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—$18,293; 

(o) Section 814(a) of the Energy 

Independence and Security Act of 2007, 

42 U.S.C. 17304—$1,472,546; 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. 

Joel Christie, 

Acting Secretary. 

[FR Doc. 2024–00301 Filed 1–9–24; 8:45 am] 

BILLING CODE 6750–01–P 

DEPARTMENT OF JUSTICE 

28 CFR Part 16 

[CPCLO Order No. 12–2021; AG Order No. 

5851–2024] 

RIN 1105–AB66 

Privacy Act Regulations 

AGENCY: United States Department of 

Justice. 

ACTION: Final rule. 

SUMMARY: This rule amends the United 

States Department of Justice (‘‘DOJ’’ or 

‘‘Department’’) Privacy Act 

implementation regulations, including 

its Privacy Act record access and 

amendment procedures. Additionally, 

this rule includes procedures regarding 

processing Privacy Act requests to 

access or amend covered records, as 

designated under the Judicial Redress 

Act of 2015, and expands protections on 

the Department’s maintenance of Social 

Security account numbers, in 

accordance with the Social Security 

Number Fraud Prevention Act of 2017. 

DATES: This final rule is effective 

February 9, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Katherine Harman-Stokes, Acting 

Director, U.S. Department of Justice, 

Office of Privacy and Civil Liberties, 

Two Constitution Square, 145 N Street 

NE, Suite 8W.300, Washington, DC 


lotter on DSK11XQN23PROD with RULES1