|
U.S. Code as of:
01/19/04
Section 1194. Administration and enforcement
(a) Enforcement under Federal Trade Commission Act provisions;
civil action to enforce standard or regulation
Except as otherwise specifically provided herein, sections 1192,
1194, 1195, and 1197(b) of this title shall be enforced by the
Commission under rules, regulations and procedures provided for in
the Federal Trade Commission Act [15 U.S.C. 41 et seq.]. In the
case of an attorney general of a State alleging a violation of a
standard or regulation under section 1193 of this title that
affects or may affect such State or its residents, such attorney
general may bring a civil action for an injunction to enforce the
requirement of such standard or regulation. The procedural
requirements of section 2073 of this title shall apply to any such
action.
(b) Application of Federal Trade Commission Act provisions
The Commission is authorized and directed to prevent any person
from violating the provisions of section 1192 of this title in the
same manner, by the same means and with the same jurisdiction,
powers and duties as though all applicable terms and provisions of
the Federal Trade Commission Act [15 U.S.C. 41 et seq.] were
incorporated into and made a part of this chapter; and any such
person violating any provision of section 1192 of this title shall
be subject to the penalties and entitled to the privileges and
immunities provided in said Federal Trade Commission Act as though
the applicable terms and provisions of the said Federal Trade
Commission Act were incorporated into and made a part of this
chapter.
(c) Rules and regulations
The Commission is authorized and directed to prescribe such rules
and regulations, including provisions for maintenance of records
relating to fabrics, related materials, and products, as may be
necessary and proper for administration and enforcement of this
chapter. The violation of such rules and regulations shall be
unlawful and shall be an unfair method of competition and an unfair
and deceptive act or practice, in commerce, under the Federal Trade
Commission Act [15 U.S.C. 41 et seq.].
(d) Inspection and analysis of products; cooperation with other
governmental entities
The Commission is authorized to -
(1) cause inspections, analyses, tests, and examinations to be
made of any product, fabric or related material which it has
reason to believe falls within the prohibitions of this chapter;
and
(2) cooperate on matters related to the purposes of this
chapter with any department or agency of the Government; with any
State or territory or with the District of Columbia or the
Commonwealth of Puerto Rico; or with any department, agency, or
political subdivision thereof; or with any person.
(e) Penalties
(1) Any person who knowingly violates a regulation or standard
under section 1193 of this title shall be subject to a civil
penalty not to exceed $5,000 for each such violation, except that
the maximum civil penalty shall not exceed $1,250,000 for any
related series of violations.
(2) In determining the amount of any penalty to be sought upon
commencing an action seeking to assess a penalty for a violation of
a regulation or standard under section 1193 of this title, the
Commission shall consider the nature and number of the violations,
the severity of the risk of injury, the occurrence or absence of
injury, and the appropriateness of such penalty in relation to the
size of the business of the person charged.
(3) Any civil penalty under this subsection 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 nature and number of the violations,
the appropriateness of such penalty to the size of the business of
the persons charged, the severity of the risk of injury, and the
occurrence or absence of injury. 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.
(4) As used in paragraph (1), the term "knowingly" means (A)
having actual knowledge, or (B) the presumed having of knowledge
deemed to be possessed by a reasonable person who acts in the
circumstances, including knowledge obtainable upon the exercise of
due care to ascertain the truth of representations.
(5)(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.
|
|