FTC Increases Civil Penalty Maximum for HSR and FTC Order Violations | Practical Law

FTC Increases Civil Penalty Maximum for HSR and FTC Order Violations | Practical Law

The Federal Trade Commission (FTC) increased the maximum civil penalty for Hart-Scott-Rodino (HSR) and FTC order violations from $16,000 per day to $40,000 per day. The increase will go into effect on August 1, 2016.

FTC Increases Civil Penalty Maximum for HSR and FTC Order Violations

Practical Law Legal Update w-002-7409 (Approx. 2 pages)

FTC Increases Civil Penalty Maximum for HSR and FTC Order Violations

by Practical Law Antitrust
Published on 05 Jul 2016 • USA (National/Federal)
The Federal Trade Commission (FTC) increased the maximum civil penalty for Hart-Scott-Rodino (HSR) and FTC order violations from $16,000 per day to $40,000 per day. The increase will go into effect on August 1, 2016.
On June 29, 2016, the FTC announced that effective August 1, 2016, the maximum civil penalty for HSR and FTC order violations will increase from $16,000 per day to $40,000 per day. The FTC stated that the increase is to adjust for inflation. The increased maximum will apply to violations that predate the effective date.
The antitrust agencies have assessed civil penalties against transacting parties for violations including:
  • Failure to file an HSR form based on improper use of the investment-only exemption.
  • Structuring a transaction solely to avoid the HSR Act, known as a Rule 801.90 violation.
  • Gun-jumping violations.
  • Failure to file an HSR form because of an inadvertent or willful violation.
  • Failure to file Item 4(c) documents in an HSR form.
For more information on civil penalties assessed for HSR violations, see HSR Act Enforcement Actions: Comprehensive Civil Penalties Chart.