15 U.S.C. § 1194 — Administration and enforcement

(a) Enforcement. Unless this chapter specifically says otherwise, the Commission enforces sections 1192, 1194, 1195, and 1197(b) under the Federal Trade Commission Act. A State attorney general alleging that a section 1193 standard or regulation violates the law and affects or may affect the State or its residents may bring a civil action for an injunction. Section 2073’s procedures apply. (b) Federal Trade Commission Act. The Commission must prevent violations of section 1192 using the same methods, jurisdiction, powers, and duties as if the applicable Federal Trade Commission Act provisions were part of this chapter. Violators receive the penalties, privileges, and immunities provided by that Act as if those provisions were part of this chapter. (c) Rules. The Commission must issue rules and regulations needed to administer and enforce this chapter, including recordkeeping for fabrics, related materials, and products. Violating them is unlawful and is an unfair method of competition and an unfair or deceptive act or practice in commerce under the Federal Trade Commission Act. (d) Inspection and cooperation. The Commission may: (1) arrange inspections, analyses, tests, and examinations of any product, fabric, or related material it reasonably believes is covered by this chapter’s prohibitions; and (2) cooperate on chapter purposes with Federal departments or agencies, States or territories, the District of Columbia, Puerto Rico, their departments, agencies, or political subdivisions, or any person. (e) Penalties. (1) A person who knowingly violates a section 1193 regulation or standard may face a civil penalty of up to $100,000 for each violation, with no more than $15,000,000 for a related series. (2) In seeking a penalty, the Commission must consider the violation’s nature, circumstances, extent, and gravity; the risk’s severity; whether injury occurred; the penalty’s fit to the business’s size; and other appropriate factors. (3) The Commission may compromise a penalty. In setting, remitting, or reducing it, it must consider those factors, including the charged persons’ business size. A finally determined or compromised penalty may be deducted from money the United States owes the charged person. (4) “Knowingly” means actual knowledge or the presumed knowledge of a reasonable person acting in the circumstances, including knowledge obtainable through due care to check the truth of representations. (5) Penalty maximums must be adjusted for inflation. (A) The adjustments follow this paragraph. (B) By December 1, 2011, and December 1 of every fifth calendar year afterward, the Commission must publish in the Federal Register a schedule applying to violations after January 1 of the following year. (C) It must increase each paragraph (1) amount by the preceding five years’ cost-of-living adjustment and round the result to the nearest multiple of $1,000 for penalties over $1,000 through $10,000, $5,000 for penalties over $10,000 through $100,000, $10,000 for penalties over $100,000 through $200,000, and $25,000 for penalties over $200,000. (D) “Consumer Price Index” means the Department of Labor’s index for all urban consumers. “Cost-of-living adjustment for the preceding five years” means the percentage by which the June index in the calendar year before the adjustment exceeds the June index before the last adjustment.