Like clockwork, the Federal Trade Commission (FTC) has issued its Adjustments to Civil Penalty Amounts for 2023. As instructed by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the FTC and other similarly situated federal agencies ring in the new year not with champagne and confetti, but with adjusted maximum civil penalty amounts.

The adjustments, which occur every year, are intended to account for inflation and are based on the cost-of-living adjustment that is calculated from U.S. Department of Labor year-to-year Consumer Price Index data.

The FTC has revised its rule for adjusting civil monetary penalty amounts by listing increased civil penalty amounts for violations under 16 different provisions of law within its jurisdiction. For example, the penalty amounts for unfair or deceptive acts or practices under Sections 5(l), 5(m)(1)(A), and 5(m)(1)(B) of the FTC Act are set to increase from $46,517 to $50,120.

The FTC’s new penalty amounts will be applied to assessments made after publication of the new amounts in the Federal Register (the “effective date”), which should take only a few days. Significantly, the new penalty amounts—once effective—will apply to violations that took place even before the effective date of the adjustment, as long as the assessment itself occurs after the effective date for the adjustment. Inflation strikes again!

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Photo of Leonard L. Gordon Leonard L. Gordon

Len Gordon, chair of Venable’s Advertising and Marketing Group, is a skilled litigator who leverages his significant experience working for the Federal Trade Commission (FTC) to help protect his clients’ interests and guide their business activity. Len regularly represents companies and individuals in…

Len Gordon, chair of Venable’s Advertising and Marketing Group, is a skilled litigator who leverages his significant experience working for the Federal Trade Commission (FTC) to help protect his clients’ interests and guide their business activity. Len regularly represents companies and individuals in investigations and litigation with the FTC, state attorneys general, the Department of Justice (DOJ), and the Consumer Financial Protection Bureau (CFPB). Len also represents clients in business-to-business and class action litigation involving both consumer protection and antitrust issues. He also counsels clients on antitrust, advertising, and marketing compliance issues.

Photo of Melissa Landau Steinman Melissa Landau Steinman

Melissa Steinman focuses on advertising and marketing, promotions, consumer protection, antitrust, trade regulation, and consumer product safety. In addition to counseling and compliance, she also actively represents clients in government investigations and defends clients against class actions. Melissa represents a broad array of…

Melissa Steinman focuses on advertising and marketing, promotions, consumer protection, antitrust, trade regulation, and consumer product safety. In addition to counseling and compliance, she also actively represents clients in government investigations and defends clients against class actions. Melissa represents a broad array of clients, including consumer products and hospitality brands, media and tech companies, retailers, gaming and software companies, start-ups, celebrities, producers, charities, and trade associations. She is particularly well known for her deep knowledge of promotions law, including sweepstakes, contests, gift cards, loyalty programs, and charitable promotions, and she speaks and writes frequently on the topic in the United States and internationally.