The Federal Trade Commission (FTC) increased the maximum civil penalty for Hart-Scott-Rodino (HSR) violations and FTC order violations from $40,000 per day to $40,654 per day. The penalty for other violations within the FTC's jurisdiction were also adjusted. The increases will go into effect on January 24, 2017.
On January 13, 2017, the FTC announced that effective January 24, 2017, the maximum civil penalty for HSR violations and violations of FTC ordersrelating to unfair or deceptive acts or practices will increase from $40,000 per day to $40,654 per day. The FTC stated that the increase is statutorily mandated to adjust for inflation.
The increased maximum will apply to violations that predate the effective date, but does not change penalties already assessed or those being actively collected.
The antitrust agencies have assessed civil penalties against transacting parties for HSR Act violations including:
Failure to file an HSR form based on improper use of an exemption, such as 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.
The adjusted maximum civil penalty amount of $40,654 applies to violations of orders issued under the FTC Act, including:
Orders issued for unfair or deceptive acts or practices under Section 5(l) of the FTC Act (15 U.S.C. § 45(l)).
Initial or final cease and desist orders for unfair or deceptive acts or practices under Section 5(m)(1)(A) and (B) of the FTC Act (15 U.S.C. §§ 45(m)(1)(A) and (m)(1)(B)).