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Federal Communications Commission DA 16-1463
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Amendment of Section 1.80(b) of the 
Commission’s Rules
Adjustment of Civil Monetary Penalties to Reflect
Inflation
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ORDER
Adopted:  December 30, 2016 Released:  December 30, 2016
By the Chief, Enforcement Bureau:
I. INTRODUCTION
1. This Order amends Section 1.80(b) of the Commission’s rules (the Rules)
1
to adjust the 
forfeiture penalties for inflation, in accordance with the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (the 2015 Inflation Adjustment Act).
2
  That Act requires agencies, starting in 
2017, to adjust annually the civil monetary penalties covered thereunder, and to publish each such annual 
adjustment by January 15.
3
The 2015 Inflation Adjustment Act provides that the new penalty levels shall 
apply to penalties assessed after the effective date of the increase, “including [penalties] whose associated 
violation predated such increase.”
4
II. DISCUSSION
2. On November 2, 2015, President Obama signed into law the Bipartisan Budget Act of 
2015, which included, as Section 701 thereto, the 2015 Inflation Adjustment Act, which amended the 
Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410), to improve the effectiveness 
of civil monetary penalties and maintain their deterrent effect.  That statute requires annual inflation 
adjustments for “any penalty, fine, or other sanction that . . . is for a specific monetary amount as 
provided by Federal law . . . or . . . has a maximum amount provided for by Federal law; and . . . is 
assessed or enforced by any agency pursuant to Federal law; and . . . is assessed or enforced pursuant to 
an administrative proceeding or a civil action in the Federal courts.”.
5
  This adjustment thus applies only 
                                                     
1
47 CFR 1.80(b).
2
Sec. 701, Pub. L. No. 114-74, 129 Stat. 584, 599.  All citations herein to the 2015 Inflation Adjustment Act are to 
the provisions of the Federal Civil Penalties Inflation Adjustment Act of 1990, codified as further amended by the 
2015 Inflation Adjustment Act at 28 U.S.C. § 2461 note (2015 Inflation Adjustment Act).
3
2015 Inflation Adjustment Act.  See also Memorandum for the Heads of Executive Departments and Agencies re 
Implementation of the 2017 annual adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015, M-17-11, Dec. 16, 2016 (OMB Dec. 2016 Guidance) at 1.
4
2015 Inflation Adjustment Act.  See also, OMB Dec. 2016 Guidance at 4.
5
2015 Inflation Adjustment Act, § 3(2), quoted in OMB Dec. 2016 Guidance at 2.
Federal Communications Commission DA 16-1463
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to penalties with a dollar amount.
6
The adjustments are calculated pursuant to Office of Management and 
Budget (OMB) guidance.
7
3. The 2015 Inflation Adjustment Act required agencies to issue an interim final 
rulemaking and publish interim final rules with initial “catch-up” adjustments by July 1, 2016, which 
were to take effect by August 1, 2016.
8
  On June 9, 2016, the Enforcement Bureau released an interim 
final rulemaking order to publish interim final rules with the initial “catch-up” adjustments.
9
  The new 
penalty levels took effect on August 1, 2016.
10
4. On December 16, 2016, the Director of OMB issued guidance on the implementation of 
the 2017 annual adjustment rate pursuant to the 2015 Inflation Adjustment Act,
11
and this Order follows 
that guidance. OMB instructs that, in order to complete the 2017 annual adjustment, the Commission 
must first identify the applicable civil monetary penalties.
12
  Then the Commission must apply the OMB 
supplied 2017 adjustment multiplier, which is 1.01636, to the most recently established or adjusted 
penalty amount.
13
Then the Commission must round each penalty amount to the nearest dollar.
14
5. In the interim final rulemaking, we individually evaluated and adjusted each penalty to 
reflect the “catch up” provisions of the 2015 Inflation Adjustment Act.  For 2017, the multiplier is applied 
to the most recent penalty amount, which includes the “catch-up” adjustment.  As such, the penalties do 
not require individualized adjustments.  Rather, the 2017 adjusted penalty or penalty range for each 
applicable penalty is calculated by multiplying the most recent “catch up” penalty amount effective on 
August 1, 2016 by the 2017 annual adjustment (1.01636), then rounding the result to the nearest dollar.
15
Attachment A provides a summary comparison of the 2016 adjustments with the 2017 adjustments. Any 
adjustments in civil monetary penalties that we adopt in this Order will apply only to such penalties 
assessed on and after the effective date of the amendments to Section 1.80(b).  
III. PROCEDURAL MATTERS
6. The Enforcement Bureau is responsible for, among other things, rulemaking proceedings 
regarding general enforcement policies and procedures.
16
Further, the Commission delegated to the 
Chief, Enforcement Bureau authority to perform such rulemaking functions that do not involve “[n]otices 
of proposed rulemaking and of inquiry and final orders in such proceedings.”
17
  In the 2015 Inflation 
                                                     
6
See OMB Dec. 2016 Guidance at 2.
7
2015 Inflation Adjustment Act, § 7.  
8
Id.  §§ 4(b)(1), 5(b)(2).
9
See Amendment of Section 1.80(b) of the Commission’s Rules, Adjustment of Civil Monetary Penalties to Reflect 
Inflation, Order, 31 FCC Rcd 6793 (EB 2016) (2016 Forfeiture Adjustment Order).
10
See Adjustment of Civil Monetary Penalties to Reflect Inflation, 81 Fed. Reg. 42554 (June 30, 2016).
11
OMB Dec. 2016 Guidance.
12
OMB Dec. 2016 Guidance at 2.
13
Id. The adjustment is “the percentage (if any)” by which the “(A) Consumer Price Index for the month of October 
preceding the date of the adjustment, exceeds (B) the Consumer Price Index for the month of October 1 year before 
the month of October referred to in subparagraph (A).” Id. at 1, n.4 (Oct. 2016 CPI-U (241.729) / Oct. 2015 CPI-U 
(237.8838) = 1.01636).  See also Federal Civil Penalties 2015 Inflation Adjustment Act of 1990, § 5(b)(1) (amended 
2015).
14
OMB Dec. 2016 Guidance at 2.  
15
Id. at 2-3.
16
See 47 CFR § 0.111(a)(22).
17
47 CFR § 0.311(a)(1).  
Federal Communications Commission DA 16-1463
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Adjustment Act, Congress has mandated the periodic adjustment of the Commission’s civil monetary 
penalties to reflect inflation and specified the formula for calculating such adjustment, and the 
Commission has no discretion to set alternative levels of adjusted civil monetary penalties.  Moreover, 
that Act expressly provided that the annual adjustments shall be made “notwithstanding” the notice and 
comment rulemaking procedures that might otherwise apply under Section 553 of the Administrative 
Procedure Act.
18
  Therefore, action on delegated authority is properly taken in this Order amending the 
Commission’s maximum civil monetary penalties, which are a part of the Commission’s general 
enforcement policies and procedures.  In addition, because a notice of proposed rulemaking is not 
required for these rule changes, the regulatory flexibility analyses otherwise required by the Regulatory 
Flexibility Act do not apply.
19
7. We have analyzed the actions taken herein with respect to the Paperwork Reduction Act 
of 1995 (PRA),
20
and we find them to impose no new or modified information collection(s) subject to the 
PRA.  In addition, therefore, pursuant to the Small Business Paperwork Relief Act of 2002,
21
our actions 
do not impose any new or modified “information collection burden for small business concerns with 
fewer than 25 employees.”
22
IV. ORDERING CLAUSES
8. Accordingly, pursuant to the Bipartisan Budget Act of 2015, 28 U.S.C. § 2461 note, and 
Sections 0.111(a)(22) and 0.311 of the Commission’s rules, 47 CFR §§ 0.111(a)(22), 0.311, IT IS 
ORDERED that this Order IS ADOPTED.
9. IT IS FURTHER ORDERED that Section 1.80(b) of the Commission’s rules, 47 CFR §
1.80(b), is AMENDED as set forth in the Appendix.
10. IT IS FURTHER ORDERED that this Order and the foregoing amendments to the 
Commission’s rules SHALL BE EFFECTIVE upon publication in the Federal Register.  
11. IT IS FURTHER ORDERED that the Enforcement Bureau shall coordinate with the 
Commission’s Consumer & Governmental Affairs Bureau, Reference Information Center, TO SEND a 
copy of this Order to Congress and the Government Accountability Office pursuant to the Congressional 
Review Act, 5 U.S.C. § 801(a)(1)(A).
FEDERAL COMMUNICATIONS COMMISSION
Travis LeBlanc 
Chief
Enforcement Bureau
                                                     
18
2015 Inflation Adjustment Act, § 4(b)(2). See also OMB Dec. 2016 Guidance at 3 (noting that the “notice, . . . 
opportunity for comment, and . . . delay in effective date” generally required by the Administrative Procedure Act 
are not required for agencies to issue regulations implementing the annual adjustment).
19
Pub. L. No. 96-354, 94 Stat. 1164 (codified at 5 U.S.C. §§ 601-612); see 5 U.S.C. §§ 603-604.
20
Pub. L. No. 104-13, 109 Stat. 163 (codified at 13 U.S.C. § 91, 44 U.S.C. §§ 101 note, and 44 U.S.C. §§ 3501-
3520).
21
Pub. L. No. 107-198, 116 Stat. 729 (codified at 5 U.S.C. § 601 note, 44 U.S.C. §§ 101 note, 3504, 3506, 3520, 
3521).
22
See 44 U.S.C. § 3506(c)(4).
Federal Communications Commission DA 16-1463
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APPENDIX
Part 1 of Chapter 1 of Title 47 of the Code of Federal Regulations is amended as follows:
PART 1---PRACTICE AND PROCEDURE
Subpart A---General Rules of Practice and Procedure
Miscellaneous Proceedings
1. The authority citation for part 1 continues to read as follows:
Authority: 15 U.S.C. 79 et seq., 47 U.S.C. 151, 154(i) and (j), 155, 157, 225, 227, 303(r), and 309.
2. Section 1.80 is amended by revising the table following paragraph (b)(8) “Section III. Non-
Section 503 Forfeitures That Are Affected by the Downward Adjustment Factors” and revising paragraph 
(b)(9) to read as follows:
§1.80  Forfeiture proceedings.
* * * * *
Section III. Non-Section 503 Forfeitures That Are Affected by the Downward Adjustment Factors
*****
-------------------------------------------------------------
Violation
Statutory
Amount
($)
Sec. 202(c) Common Carrier Discrimination …… 
Sec. 203(e) Common Carrier Tariffs …………….
Sec. 205(b) Common Carrier Prescriptions ……...
Sec. 214(d) Common Carrier Line Extensions ….. 
Sec. 219(b) Common Carrier Reports …………
Sec. 220(d) Common Carrier Records & Accounts 
Sec. 223(b) Dial-a-Porn ………………………….
Sec. 227(e) Caller Identification ………………....
Sec. 364(a) Forfeitures (Ships) ………………….. 
Sec. 364(b) Forfeitures (Ships) …………………. 
$11,548, $577/day
$11,548, $577/day
$23,095
$2,309/day
$2,309/day
$11,548/day
$119,668/day
$11,052/violation
$33,156/day for each day of continuing violation,
up to $1,105,241 for any single act or failure to 
act
$9,623/day (owner)
$1,925 (vessel master)
Federal Communications Commission DA 16-1463
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Sec. 386(a) Forfeitures (Ships) ………………….
Sec. 386(b) Forfeitures (Ships) …………………. 
Sec. 634 Cable EEO ………………………….…. 
$9,623/day (owner)
$1,925 (vessel master)
$853/day
(9) Inflation adjustments to the maximum forfeiture amount.
(i) Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public 
Law 114-74 (129 Stat. 599-600), which amends the Federal Civil Monetary Penalty Inflation Adjustment 
Act of 1990, Public Law 101-410 (104 Stat. 890; 28 U.S.C. 2461 note), the statutory maximum amount of 
a forfeiture penalty assessed under this section shall be adjusted annually for inflation by order published 
no later than January 15 each year  Annual inflation adjustments will be based on the percentage (if any) 
by which the CPI-U for October preceding the date of the adjustment exceeds the prior year’s CPI-U for 
October.  The Office of Management and Budget (OMB) will issue adjustment rate guidance no later than 
December 15 each year to adjust for inflation in the CPI-U as of the most recent October.  
(ii) The application of the annual inflation adjustment required by the foregoing Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 results in the following adjusted statutory maximum 
forfeitures authorized by the Communications Act:
U.S. Code citation Maximum Penalty after
2017 Annual Inflation Adjustment 
47 U.S.C. 202(c) …………………………………
47 U.S.C. 203(e) …………………………………
47 U.S.C. 205(b) ……............................................
47 U.S.C. 214(d) ….. …………………………….
47 U.S.C. 219(b) …………………………………
47 U.S.C. 220(d) ………………………………… 
47 U.S.C. 223(b) …………………………………
47 U.S.C. 227(e) …………………………………
47 U.S.C. 362(a) …………………………………
47 U.S.C. 362(b) ………………………………… 
47 U.S.C. 386(a) …………………. ……………..
47 U.S.C. 386(b) …………………. ……………..
47 U.S.C. 503(b)(2)(A) …………………………..
$11,548
$577
$11,548
$577
$23,095
$2,309
$2,309
$11,548
$119,668
$11,052
$33,156
$1,105,241
$9,623
$1,925
$9,623
$1,925
$48,114
$481,147
Federal Communications Commission DA 16-1463
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47 U.S.C. 503(b)(2)(B) ………………...………... $192,459
$1,924,589
47 U.S.C. 503(b)(2)(C) ………………………….. $389,305
47 U.S.C. 503(b)(2)(D) …………………………..
$3,593,585
$19,246
47 U.S.C. 503(b)(2)(F)
47 U.S.C. 507(a) ………………...……………….
$144,344
$110,524
$1,105,241
$1,906
47 U.S.C. 507(b) ……………………………….... $279
47 U.S.C. 554 ……………………………………. $853
* * * * *
Federal Communications Commission DA 16-1463
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ATTACHMENT A
Section 1.80 Maximum Forfeiture Penalties 
U.S. Code Citation Maximum Forfeiture Penalty as 
of August 1, 2016
Maximum Forfeiture as of 
January 15, 2017
47 U.S.C. 202(c) $11,362
$568/day
$11,548
$577/day
47 U.S.C. 203(e) $11,362
$568/day
$11,548
$577/day
47 U.S.C. 205(b) $22,723 $23,095
47 U.S.C. 214(d) $2,272 $2,309
47 U.S.C. 219(b) $2,272 $2,309
47 U.S.C. 220(d) $11,362 $11,548
47 U.S.C. 223(b) $117,742 $119,668
47 U.S.C. 227(e) $10,874/violation
$32,622/day for each day of 
continuing violation up to
$1,087,450 for any single act or 
failure to act
$11,052/violation
$33,156/day for each day of 
continuing violation up to
$1,105,241 for any single act or 
failure to act
47 U.S.C. 364(a) $9,468 $9,623
47 U.S.C. 364(b) $1,894 $1,925
47 U.S.C. 386(a) $9,468 $9,623
47 U.S.C. 386(b) $1,894 $1,925
47 U.S.C. 503(b)(2)(A) $47,340/violation or each day of 
a continuing violation
up to
$473,402 for any single act or 
failure to act
$48,114/violation or each day of 
a continuing violation
up to
$481,147 for any single act or 
failure to act
47 U.S.C. 503(b)(2)(B) $189,361/violation or each day 
of a continuing violation up to 
$1,893,610 for any single act or 
failure to act
$192,459/violation or each day 
of a continuing violation up to 
$1,924,589 for any single act or 
failure to act
47 U.S.C. 503(b)(2)(C) $383,038/violation or each day 
of a continuing violation up to 
$3,535,740 for any single act or 
failure to act
$389,305/violation or each day 
of a continuing violation up to 
$3,593,585 for any single act or 
failure to act
47 U.S.C. 503(b)(2)(D) $18,936/violation or each day of 
a continuing violation
up to $142,021 for any single 
act or failure to act
$19,246/violation or each day of 
a continuing violation
up to $144,344 for any single 
act or failure to act
47 U.S.C. 503(b)(2)(F) $108,745/violation or each day 
of a continuing violation up to
$1,087,450 for any single act or 
failure to act
$110,524/violation or each day 
of a continuing violation up to
$1,105,241 for any single act or 
failure to act
47 U.S.C. 507(a) $1,875 $1,906
47 U.S.C. 507(b) $275 $279
47 U.S.C. 554 $839 $853