1070 Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Rules and Regulations 

1Public Law 114–74, 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); 

86 FR 2539 (2021). 

3 16 CFR 1.98. 4 28 U.S.C. 2461 note (4). 

List of Subjects in 14 CFR Part 27 

Aircraft, Aviation safety, Reporting 

and recordkeeping requirements. 

Authority Citation 

The authority citation for these 

special conditions is as follows: 

Authority: 49 U.S.C. 106(f), 106(g), 40113, 

44701, 44702, 44704. 

The Special Conditions 

Accordingly, pursuant to the 

authority delegated to me by the 

Administrator, the following special 

conditions are issued as part of the type 

certification basis for the Airbus 

Helicopters (Airbus) Model AS350B2 

and AS350B3 helicopters, as modified 

by Vector Aerospace Helicopter Services 

USA. 

For certification of the stability 

augmentation system and automatic 

flight control system (SAS/AFSC) 

installed on Airbus Model AS350B2 and 

AS350B3 helicopters, instead of the 

requirements of 14 CFR 27.1309(b) and 

(c), the following must be met: 

(a) These systems and their 

equipment must be designed and 

installed so that they do not adversely 

affect the safety of the rotorcraft or its 

occupants. 

(b) These systems and their associated 

components considered separately and 

in relation to other systems must be 

designed and installed so that: 

(1) The occurrence of any catastrophic 

failure condition is extremely 

improbable; 

(2) The occurrence of any hazardous 

failure condition is extremely remote; 

and 

(3) The occurrence of any major 

failure condition is remote. 

(c) Information concerning an unsafe 

system operating condition must be 

provided in a timely manner to the crew 

to enable them to take appropriate 

corrective action. An appropriate alert 

must be provided if immediate pilot 

awareness and immediate or subsequent 

corrective action are required. These 

systems and their controls, including 

indications and annunciations, must be 

designed to minimize crew errors that 

could create additional hazards. 

Issued in Kansas City, Missouri, on January 

4, 2022. 

Patrick R. Mullen, 

Manager, Technical Innovation Policy 

Branch, Policy and Innovation Division, 

Aircraft Certification Service. 

[FR Doc. 2022–00096 Filed 1–7–22; 8:45 am] 

BILLING CODE 4910–13–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 10, 2022. 

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 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 2021 

adjustment. The following adjusted 

amounts will take effect on January 10, 

2022: 

• 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 $43,792 to $46,517; 

• 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 $23,266 to 

$24,714; 

• Section 5(l) of the FTC Act, 15 

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

practices)—Increase from $43,792 to 

$46,517; 

• 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 $43,792 to $46,517; 

• 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 $43,792 to $46,517; 

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

50 (failure to file required reports)— 

Increase from $576 to $612; 

• 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 $576 to $612; 

• 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 $576 

to $612; 

• 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 $576 to $612; 

• 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 $576 to 

$612; 

• 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 $474 to $503; 

• Section 525(a) of the Energy Policy 

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

(recycled oil labeling violations)— 

Increase from $23,266 to $24,714; 

• 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 

$43,792 to $46,517; 

• 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 $4,111 to 

$4,367; 

• 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 $15,482 to $16,445; 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 

$1,246,249 to $1,323,791. 

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 


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Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Rules and Regulations 1071 

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

Memorandum M–22–07, Implementation of Penalty 

Inflation Adjustments for 2022, Pursuant to the 

Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015 (December 15, 2021), 

available at: https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.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. 

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 1.06222. 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 

2021 Penalty 

level 

($) 

Adjustment 

multiplier 

2022 Penalty 

level 

(rounded to 

the nearest 

dollar) 

16 CFR 1.98(a): 15 U.S.C. 18a(g)(1) ............. Premerger filing notification violations ........... $43,792 1.06222 $46,517 

16 CFR 1.98(b): 15 U.S.C. 21(l) ..................... Violations of cease and desist orders ............ 23,266 1.06222 24,714 

16 CFR 1.98(c): 15 U.S.C. 45(l) ..................... Unfair or deceptive acts or practices ............. 43,792 1.06222 46,517 

16 CFR 1.98(d): 15 U.S.C. 45(m)(1)(A) ......... Unfair or deceptive acts or practices ............. 43,792 1.06222 46,517 

16 CFR 1.98(e): 15 U.S.C. 45(m)(1)(B) ......... Unfair or deceptive acts or practices ............. 43,792 1.06222 46,517 

16 CFR 1.98(f): 15 U.S.C. 50 ......................... Failure to file required reports ........................ 576 1.06222 612 

16 CFR 1.98(g): 15 U.S.C. 65 ........................ Failure to file required statements ................. 576 1.06222 612 

16 CFR 1.98(h): 15 U.S.C. 68d(b) ................. Failure to maintain required records .............. 576 1.06222 612 

16 CFR 1.98(i): 15 U.S.C. 69a(e) ................... Failure to maintain required records .............. 576 1.06222 612 

16 CFR 1.98(j): 15 U.S.C. 69f(d)(2) ............... Failure to maintain required records .............. 576 1.06222 612 

16 CFR 1.98(k): 42 U.S.C. 6303(a) ................ Knowing violations ......................................... 474 1.06222 503 

16 CFR 1.98(l): 42 U.S.C. 6395(a) ................. Recycled oil labeling violations ...................... 23,266 1.06222 24,714 

16 CFR 1.98(l): 42 U.S.C. 6395(b) ................. Willful violations .............................................. 43,792 1.06222 46,517 

16 CFR 1.98(m): 15 U.S.C. 1681s(a)(2) ........ Knowing violations ......................................... 4,111 1.06222 4,367 

16 CFR 1.98(n): 21 U.S.C. 355 note .............. Non-compliance with filing requirements ....... 15,482 1.06222 16,445 

16 CFR 1.98(o): 42 U.S.C. 17304 .................. Market manipulation or provision of false information to federal agencies.1,246,249 1.06222 1,323,791 

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 

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 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 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, 

2022, including those penalties whose 

associated violation predated January 

10, 2022. 

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

Act, 15 U.S.C. 18a(g)(1)—$46,517; 

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

U.S.C. 21(l)—$24,714; 

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

U.S.C. 45(l)—$46,517; 

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

15 U.S.C. 45(m)(1)(A)—$46,517; 

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

15 U.S.C. 45(m)(1)(B)—$46,517; 

(f) Section 10 of the FTC Act, 15 

U.S.C. 50—$612; 

(g) Section 5 of the Webb-Pomerene 

(Export Trade) Act, 15 U.S.C. 65—$612; 

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

Labeling Act, 15 U.SC. 68d(b)—$612; 

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

Labeling Act, 15 U.S.C. 69a(e)—$612; 

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

Labeling Act, 15 U.S.C. 69f(d)(2)—$612; 


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1072 Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Rules and Regulations 

1 81 FR 36771 (Jun. 8, 2016). 

2 82 FR 3168 (Jan. 11, 2017). 

3 83 FR 234 (Jan. 3, 2018). 

4 84 FR 9957 (Mar. 19, 2019). 

5 85 FR 2020 (Jan. 14, 2020). 

6 86 FR 7804 (Feb. 2, 2021). 

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

and Conservation Act, 42 U.S.C. 

6303(a)—$503; 

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

Energy Policy and Conservation Act, 42 

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

$24,714 and $46,517, respectively; 

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

Credit Reporting Act, 15 U.S.C. 

1681s(a)(2)—$4,367; 

(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—$16,445; 

(o) Section 814(a) of the Energy 

Independence and Security Act of 2007, 

42 U.S.C. 17304—$1,323,791; 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 Tabor, 

Secretary. 

[FR Doc. 2022–00213 Filed 1–7–22; 8:45 am] 

BILLING CODE 6750–01–P 

DEPARTMENT OF STATE 

22 CFR Parts 35, 103, 127, and 138 

[Public Notice: 11617] 

RIN 1400–AF43 

Department of State 2022 Civil 

Monetary Penalties Inflationary 

Adjustment 

AGENCY: Department of State. 

ACTION: Final rule. 

SUMMARY: This final rule is issued to 

adjust the civil monetary penalties 

(CMP) for regulatory provisions 

maintained and enforced by the 

Department of State. The revised CMP 

adjusts the amount of civil monetary 

penalties assessed by the Department of 

State based on the December 2021 

guidance from the Office of 

Management and Budget. The new 

amounts will apply only to those 

penalties assessed on or after the 

effective date of this rule, regardless of 

the date on which the underlying facts 

or violations occurred. 

DATES: This final rule is effective on 

January 10, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Alice Kottmyer, Attorney-Adviser, 

Office of Management, kottmyeram@

state.gov. ATTN: Regulatory Change, 

CMP Adjustments, (202) 647–2318. 

SUPPLEMENTARY INFORMATION: The 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, Public Law 

101–410, as amended by the Debt 

Collection Improvement Act of 1996, 

Public Law 104–134, required the head 

of each agency to adjust its CMPs for 

inflation no later than October 23, 1996 

and required agencies to make 

adjustments at least once every four 

years thereafter. The Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015, Section 701 

of Public Law 114–74 (the 2015 Act) 

further amended the 1990 Act by 

requiring agencies to adjust CMPs, if 

necessary, pursuant to a ‘‘catch-up’’ 

adjustment methodology prescribed by 

the 2015 Act, which mandated that the 

catch-up adjustment take effect no later 

than August 1, 2016. Additionally, the 

2015 Act required agencies to make 

annual adjustments to their respective 

CMPs in accordance with guidance 

issued by the Office of Management and 

Budget (OMB). 

Based on these statutes, the 

Department of State (the Department) 

published a final rule in June 2016 1 to 

implement the ‘‘catch-up’’ provisions; 

and annual updates to its CMPs in 

January 2017,2 January 2018,3 March 

2019 (delayed due to the Government 

shutdown),4 January 2020,5 and 

February 2021 (delayed due to 

transition issues).6

On December 15, 2021, OMB notified 

agencies that the annual cost-of-living 

adjustment multiplier for 2021, based 

on the Consumer Price Index, is 

1.06222. Additional information may be 

found in OMB Memorandum M–22–07 

at: https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.pdf. 

This final rule amends Department 

CMPs for fiscal year 2022. 

Overview of the Areas Affected by This 

Rule 

Within the Department of State (title 

22, Code of Federal Regulations), this 

rule affects four areas: 

(1) Part 35, which implements the 

Program Fraud Civil Remedies Act of 

1986 (PFCRA), codified at 31 U.S.C. 

3801–3812; 

(2) Part 103, which implements the 

Chemical Weapons Convention 

Implementation Act of 1998 (CWC Act); 

(3) Part 127, which implements the 

penalty provisions of sections 38(e), 

39A(c), and 40(k) of the Arms Export 

Control Act (AECA) (22 U.S.C. 2778(e), 

2779a(c), and 2780(k)); and 

(4) Part 138, which implements 

Section 319 of Public Law 101–121, 

codified at 31 U.S.C. 1352, prohibits 

recipients of Federal contracts, grants, 

and loans from using appropriated 

funds for lobbying the executive or 

legislative branches of the Federal 

Government in connection with a 

specific contract. 

Specific Changes to 22 CFR Made by 

This Rule 

I. Part 35 

The PFCRA, enacted in 1986, 

authorizes agencies, with approval from 

the Department of Justice, to pursue 

individuals or firms for false claims. In 

addition to applying the annual 

adjustment, this rule also corrects a 

typographical error made in the Code of 

Federal Regulations (CFR). On January 

14, 2020, a rule (85 FR 2020) was 

published in the Federal Register noting 

the inflationary adjustment in § 35.3 for 

2020. Although the rule correctly listed 

the maximum amount at $349,969, an 

error was made in amending the CFR 

itself, with the amount entered as 

$343,969. The inflationary adjustment 

for 2021 (86 FR 7804 (February 2, 2020)) 

then applied the correct multiplier 

(1.01182), but to the erroneously entered 

number. The maximum amount was 

listed for 2021 as $348,035 but should 

have been $354,106. 

This rule corrects those errors, and for 

the 2022 inflationary adjustment uses 

the proper $354,106 multiplied by the 

inflationary adjustment for 2022 

(1.06222), resulting in a maximum 

liability of $376,138. The amounts for 

the maximum penalty for each false 

claim or statement were correctly 

entered in both 2020 and 2021. 

Consequently, applying the 2022 

multiplier, the new maximum penalty is 

$12,537 for each false claim or 

statement, up to a maximum of 

$376,138. 

II. Part 103 

The CWC Act provided domestic 

implementation of the Convention on 

the Prohibition of the Development, 

Production, Stockpiling, and Use of 

Chemical Weapons and on Their 

Destruction. The penalty provisions of 

the CWC Act are codified at 22 U.S.C. 

6761. Applying the 2021 multiplier, the 

new maximum amounts are as follows: 

Prohibited acts related to inspections, 

$42,163; for recordkeeping violations, 

$8,433. 

III. Part 127 

The Assistant Secretary of State for 

Political-Military Affairs is responsible 


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