On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act), to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The 2015 Act requires agencies to: (1) Adjust the level of civil monetary penalties with an initial "catch-up" adjustment through an interim final rule (IFR); and (2) make subsequent annual adjustments for inflation.
In accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the Department of Transportation ("DOT") has issued an interim final rule to adjust for inflation the maximum civil penalty amounts for violations of certain aviation economic statutes and the rules and orders issued pursuant to these statutes. DOT has promulgated this interim final rule to ensure that the maximum civil penalty liability amounts set forth in 14 CFR Part 383 that may be assessed by the Department as a result of violations of certain economic provisions of Title 49 of the United States Code reflect the statutorily mandated maximums as adjusted for inflation.
In accordance with the foregoing, civil penalties for violations of 49 USC § 40301(a)(1), which is the primary statutory authority for penalties against air carriers in a consumer protection context, have been increased from USD 27,500 to USD 32,140 per violation.
US Department Of Transportation Adjusts Civil Penalties For Inflation
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