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, circumstances, extent, and gravity of the violation, including 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, the appropriateness of such penalty in relation to the size of the business of the person charged, including how to mitigate undue adverse economic impacts on small businesses, and such other factors as appropriate.
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, including how to mitigate undue adverse economic impacts on small businesses, the nature, circumstances, extent, and gravity of the violation, including,1 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, and such other factors as appropriate. 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.
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.
1So in original. The comma probably should not appear.
15 U.S.C. § 2069
EDITORIAL NOTES
AMENDMENTS2008-Subsec. (a)(1). Pub. L. 110-314, §217(a)(1)(A), (B), substituted "$100,000" for "$5,000" and substituted "$15,000,000" for "$1,250,000" in two places.Subsec. (a)(3)(B). Pub. L. 110-314, §217(a)(1)(C), which directed amendment of subsec. (a)(1) by substituting "December 1, 2011," for "December 1, 1994," in par. (3)(B), was executed by making the substitution in subsec. (a)(3)(B) to reflect the probable intent of Congress. Subsec. (b). Pub. L. 110-314, §217(b)(1)(A)(i), inserted "the nature, circumstances, extent, and gravity of the violation, including" after "shall consider", substituted "products distributed," for "products distributed, and", and inserted ",including how to mitigate undue adverse economic impacts on small businesses, and such other factors as appropriate" before period at end.Subsec. (c). Pub. L. 110-314, §217(b)(1)(A)(ii)(II), inserted ",and such other factors as appropriate" after "products distributed". Pub. L. 110-314, §217(b)(1)(A)(ii)(I), which directed amendment of subsec. (c) by inserting ",including how to mitigate undue adverse economic impacts on small businesses, the nature, circumstances, extent, and gravity of the violation, including" after "person charged", was executed by making the insertion after "person charged" the first place appearing, to reflect the probable intent of Congress. 1990-Subsec. (a)(1). Pub. L. 101-608, §§112(e), 115, substituted "$5,000" for "$2,000", and "(10), or (11)" for "or (10)", and substituted "$1,250,000" for "$500,000" in two places. Subsec. (a)(3). Pub. L. 101-608, §115(a)(3), added par. (3).1981-Subsecs. (b) to (d). Pub. L. 97-35 added subsec. (b), redesignated former subsec. (b) as (c), substituted "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" for "the appropriateness of such penalty to the size of the business of the person charged and the gravity of the violation shall be considered", and redesignated subsec. (c) as (d). 1978-Subsec. (a)(1). Pub. L. 95-631 made violation of section 2068(a)(10) of this title a separate offense. 1976-Subsec. (a)(1). Pub. L. 94-284 inserted reference to pars. (8) and (9).
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2008 AMENDMENT Amendment by section 217(a)(1) of Pub. L. 110-314 effective on the date that is the earlier of the date on which final regulations are issued under section 217(b)(2) of Pub. L. 110-314 set out below, or 1 year after Aug. 14, 2008, see section 217(a)(4) of Pub. L. 110-314 set out as a note under section 1194 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section 1215 of Pub. L. 97-35 set out as a note under section 2052 of this title.
EFFECTIVE DATESection effective on the sixtieth day following Oct. 27, 1972, see section 34 of Pub. L. 92-573 set out as a note under section 2051 of this title.
CIVIL PENALTY CRITERIA Pub. L. 110-314, title II, §217(b)(2), Aug. 14, 2008, 122 Stat. 3059, provided that: "Not later than 1 year after the date of enactment of this Act [Aug. 14, 2008], and in accordance with the procedures of section 553 of title 5, United States Code, the [Consumer Product Safety] Commission shall issue a final regulation providing its interpretation of the penalty factors described in section 20(b) of the Consumer Product Safety Act (15 U.S.C. 2069(b)), section 5(c)(3) of the Federal Hazardous Substances Act (15 U.S.C. 1264(c)(3)), and section 5(e)(2) of the Flammable Fabrics Act (15 U.S.C. 1194(e)(2)), as amended by subsection (a)."
- Commission
- The term "Commission" means the Consumer Product Safety Commission, established by section 2053 of this title.
- manufacturer
- The term "manufacturer" means any person who manufactures or imports a consumer product.
- private labeler
- The term "private labeler" means an owner of a brand or trademark on the label of a consumer product which bears a private label.
- risk of injury
- The term "risk of injury" means a risk of death, personal injury, or serious or frequent illness.