§ 2069. — Civil penalties.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC2069]
TITLE 15--COMMERCE AND TRADE
CHAPTER 47--CONSUMER PRODUCT SAFETY
Sec. 2069. Civil penalties
(a) Amount of penalty
(1) Any person who knowingly violates section 2068 of this title
shall be subject to a civil penalty not to exceed $5,000 for each such
violation. Subject to paragraph (2), a violation of section 2068(a)(1),
(2), (4), (5), (6), (7), (8), (9), (10), or (11) of this title shall
constitute a separate offense with respect to each consumer product
involved, except that the maximum civil penalty shall not exceed
$1,250,000 for any related series of violations. A violation of section
2068(a)(3) of this title shall constitute a separate violation with
respect to each failure or refusal to allow or perform an act required
thereby; and, if such violation is a continuing one, each day of such
violation shall constitute a separate offense, except that the maximum
civil penalty shall not exceed $1,250,000 for any related series of
violations.
(2) The second sentence of paragraph (1) of this subsection shall
not apply to violations of paragraph (1) or (2) of section 2068(a) of
this title--
(A) if the person who violated such paragraphs is not the
manufacturer or private labeler or a distributor of the products
involved, and
(B) if such person did not have either (i) actual knowledge that
his distribution or sale of the product violated such paragraphs or
(ii) notice from the Commission that such distribution or sale would
be a violation of such paragraphs.
(3)(A) The maximum penalty amounts authorized in paragraph (1) shall
be adjusted for inflation as provided in this paragraph.
(B) Not later than December 1, 1994, and December 1 of each fifth
calendar year thereafter, the Commission shall prescribe and publish in
the Federal Register a schedule of maximum authorized penalties that
shall apply for violations that occur after January 1 of the year
immediately following such publication.
(C) The schedule of maximum authorized penalties shall be prescribed
by increasing each of the amounts referred to in paragraph (1) by the
cost-of-living adjustment for the preceding five years. Any increase
determined under the preceding sentence shall be rounded to--
(i) in the case of penalties greater than $1,000 but less than
or equal to $10,000, the nearest multiple of $1,000;
(ii) in the case of penalties greater than $10,000 but less than
or equal to $100,000, the nearest multiple of $5,000;
(iii) in the case of penalties greater than $100,000 but less
than or equal to $200,000, the nearest multiple of $10,000; and
(iv) in the case of penalties greater than $200,000, the nearest
multiple of $25,000.
(D) For purposes of this subsection:
(i) The term ``Consumer Price Index'' means the Consumer Price
Index for all-urban consumers published by the Department of Labor.
(ii) The term ``cost-of-living adjustment for the preceding five
years'' means the percentage by which--
(I) the Consumer Price Index for the month of June of the
calendar year preceding the adjustment; exceeds
(II) the Consumer Price Index for the month of June
preceding the date on which the maximum authorized penalty was
last adjusted.
(b) Relevant factors in determining amount of penalty
In determining the amount of any penalty to be sought upon
commencing an action seeking to assess a penalty for a violation of
section 2068(a) of this title, the Commission shall consider the nature
of the product defect, the severity of the risk of injury, the
occurrence or absence of injury, the number of defective products
distributed, and the appropriateness of such penalty in relation to the
size of the business of the person charged.
(c) Compromise of penalty; deductions from penalty
Any civil penalty under this section may be compromised by the
Commission. In determining the amount of such penalty or whether it
should be remitted or mitigated and in what amount, the Commission shall
consider the appropriateness of such penalty to the size of the business
of the person charged, the nature of the product defect, the severity of
the risk of injury, the occurrence or absence of injury, and the number
of defective products distributed. The amount of such penalty when
finally determined, or the amount agreed on compromise, may be deducted
from any sums owing by the United States to the person charged.
(d) ``Knowingly'' defined
As used in the first sentence of subsection (a)(1) of this section,
the term ``knowingly'' means (1) the having of actual knowledge, or (2)
the presumed having of knowledge deemed to be possessed by a reasonable
man who acts in the circumstances, including knowledge obtainable upon
the exercise of due care to ascertain the truth of representations.
(Pub. L. 92-573, Sec. 20, Oct. 27, 1972, 86 Stat. 1225; Pub. L. 94-284,
Sec. 13(b), May 11, 1976, 90 Stat. 509; Pub. L. 95-631, Sec. 6(c), Nov.
10, 1978, 92 Stat. 3745; Pub. L. 97-35, title XII, Sec. 1211(c), Aug.
13, 1981, 95 Stat. 721; Pub. L. 101-608, title I, Secs. 112(e), 115(a),
Nov. 16, 1990, 104 Stat. 3117, 3118.)
Amendments
1990--Subsec. (a)(1). Pub. L. 101-608, Secs. 112(e), 115(a)(1), (2),
substituted ``$5,000'' for ``$2,000'', and ``(10), or (11)'' for ``or
(10)'', and substituted ``$1,250,000'' for ``$500,000'' in two places.
Subsec. (a)(3). Pub. L. 101-608, Sec. 115(a)(3), added par. (3).
1981--Subsecs. (b) to (d). Pub. L. 97-35 added subsec. (b),
redesignated former subsec. (b) as (c), substituted ``the Commission
shall consider the appropriateness of such penalty to the size of the
business of the person charged, the nature of the product defect, the
severity of the risk of injury, the occurrence or absence of injury, and
the number of defective products distributed'' for ``the appropriateness
of such penalty to the size of the business of the person charged and
the gravity of the violation shall be considered'', and redesignated
subsec. (c) as (d).
1978--Subsec. (a)(1). Pub. L. 95-631 made violation of section
2068(a)(10) of this title a separate offense.
1976--Subsec. (a)(1). Pub. L. 94-284 inserted reference to pars. (8)
and (9).
Effective Date of 1981 Amendment
Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section 1215
of Pub. L. 97-35, set out as a note under section 2052 of this title.
Section Referred to in Other Sections
This section is referred to in section 2055 of this title.
