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TITLE 15 > CHAPTER 47 > § 2069
§ 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—
(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;
(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.
(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
(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.
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