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Consumer Product Safety Act
15 U.S.C. Section 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:
(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.
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