******************************************************** 
                      NOTICE
********************************************************

This document was converted from Microsoft Word.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.

*****************************************************************



Federal Communications Commission DA 16-644
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
)
)
)
)
)
)
)
ORDER
Adopted:  June 9, 2016 Released:  June 9, 2016
By the Chief, Enforcement Bureau:
I. INTRODUCTION
1. This procedural 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
  As discussed below, 
agencies are required to publish interim final rules with the initial penalty adjustment amounts by July 1, 
2016.  The new penalty levels must take effect no later than August 1, 2016. 
2. Any adjustments in civil monetary penalties that we adopt in this Order will apply only to 
such penalties assessed after the effective date of the amendments to Section 1.80(b).
3
  In addition to 
implementing the required inflation adjustments, we also amend Section 1.80(b) to reflect certain other 
changes required by the 2015 Inflation Adjustment Act.
4
       
II. DISCUSSION
A. Background
3. On November 2, 2015, the President 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.  Agencies must issue an interim final rulemaking 
and publish interim final rules by July 1, 2016, which will take effect by August 1, 2016.  Agencies must 
                                                     
1
47 CFR 1.80(b).
2
Sec. 701, Pub. L. No. 114-74, 129 Stat. 599 (codified as amended 28 U.S.C. § 2461 note).
3
See 28 U.S.C. § 2461 note (6). All references to 28 U.S.C. 2461 note herein are to the note, as amended by Section 
701(b) of the Bipartisan Budget Act of 2015 (the 2015 Inflation Adjustment Act). 
4
The Commission last released an order adjusting its forfeiture amounts for inflation in August 2013.  See 
Amendment of Section 1.80(b) of the Commission’s Rules, Adjustment of Civil Monetary Penalties to Reflect 
Inflation, Order, 28 FCC Rcd 10785 (2013) (2013 Forfeiture Adjustment Order).  The adjustments adopted in that 
Order took effect on September 13, 2013.  See Inflation Adjustment of Maximum Forfeiture Penalties, 78 Fed. Reg. 
49,370 – 49,372 (August 14, 2013).
Federal Communications Commission DA 16-644
2
make subsequent annual adjustments for inflation.  Annual adjustments must be published by January 15 
each year.
5
4. According to the 2015 Inflation Adjustment Act, the initial inflation adjustment will be 
the percentage by which the Consumer Price Index (CPI) for the month of October 2015 exceeds the CPI 
for the month of October of the calendar year during which the civil monetary penalty “was established or 
adjusted under a provision of law other than this Act.”
6
  The 2015 Inflation Adjustment Act requires the 
Director of the Office of Management and Budget (OMB) to issue, guidance to agencies on implementing 
the Act.
7
OMB issued that guidance on February 24, 2016,
8
and this Order follows that guidance.
5. Pursuant to the 2015 Inflation Adjustment Act, we update the civil monetary penalties set 
forth in the Communications Act of 1934, as amended (Communications Act or Act),
9
to reflect an 
“inflation adjustment”
10
that derives from the “cost-of-living adjustment.”
11
The cost-of-living adjustment 
reflects the total inflation that has taken place in the years since the penalties were last set or adjusted by 
statute or rule.  Specifically, 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).”
12
6. The 2015 Inflation Adjustment Act prescribes the following steps in making the initial 
adjustment to a given penalty for inflation.  First, the Commission must identify the applicable civil 
monetary penalties.  Second, it must determine when each penalty was “established or adjusted under a 
provision of law other than [the Inflation Adjustment Act].”
13
  Third, for each penalty, the Commission 
must calculate the catch-up adjustment, or the percentage increase, that must be applied, based upon the 
Consumer Price Index (CPI).
14
  OMB provided the applicable CPI rate to be applied for each year.
15
7. The adjusted penalties addressed in this Order were established or adjusted at different 
times, and thus require individualized adjustments.  Attachment A provides the multipliers, which OMB 
provided, used to adjust the penalty level or range of penalty levels based on the year the penalty was 
established or last adjusted by statute or regulation.  After applying the multiplier, penalty levels are 
rounded to the nearest dollar.
16
  Attachment B sets forth the adjusted penalty or penalty range for each 
applicable Commission rule. Attachment C provides a sample adjustment calculation.
                                                     
5
28 U.S.C. § 2461 note (4).
6
28 U.S.C. § 2461 note (5).
7
28 U.S.C. § 2461 note (7).  
8
Implementation of the Federal Penalties Inflation Adjustment Improvements Act of 2015, OMB M-16-06 
(February 24, 2016).
9
47 U.S.C. § 151 et seq.
10
28 U.S.C. § 2461 note (5). 
11
Id.
12
Id.; see also id. § 2461 note (3) (“`Consumer Price Index’” means the Consumer Price Index for all-urban 
consumers published by the Department of Labor.”).
13
28 U.S.C. § 2461 note (5).
14
Prior inflationary adjustments under the Inflation Adjustment Act will be excluded to address implementation 
challenges and to remedy the decline in the real value of penalty levels created by the 10 percent cap employed in 
previous adjustments.  28 U.S.C. § 2461 note (6).  
15
See Attachment A, Table A.
16
In accordance with the 2015 Inflation Adjustment Act, penalty levels shall not be increased by more than 150 
percent of the corresponding levels in effect on November 2, 2015.  The 150 percent limitation is on the amount of 
(continued….)
Federal Communications Commission DA 16-644
3
III. PROCEDURAL MATTERS
8. The Enforcement Bureau is responsible for, among other things, rulemaking proceedings 
regarding general enforcement policies and procedures.
17
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.”
18
  Because Congress has 
mandated the periodic adjustment of the Commission’s civil monetary penalties to reflect inflation and 
specifies the formula for calculating such adjustment, the Commission has no discretion to set alternative 
levels of adjusted civil monetary penalties.  Additionally, there will be no prior notice and solicitation of 
public comments.
19
  Accordingly, 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.  
9. Because a notice of proposed rulemaking is not required for these rule changes, the 
Regulatory Flexibility Act does not apply.
20
10. We have analyzed the actions taken herein with respect to the Paperwork Reduction Act 
of 1995 (PRA),
21
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,
22
our actions 
do not impose any new or modified “information collection burden for small business concerns with 
fewer than 25 employees.”
23
IV. ORDERING CLAUSES
11. Accordingly, pursuant to Section 4(i) and 303(r) of the Communications Act of 1934, as 
amended, 47 U.S.C. §§ 154(i), 303(r), and the Bipartisan Budget Act of 2015, 28 U.S.C. § 2461 note, IT 
IS ORDERED that Section 1.80(b) of the Commission’s rules, 47 CFR § 1.80(b), is AMENDED as set 
forth in the Appendix, EFFECTIVE July 1, 2016.  This action is properly taken pursuant to the functions 
of the Enforcement Bureau and the authority delegated to the Chief of the Enforcement Bureau found in 
Sections 0.111(a)(22) and 0.311 of the Commission’s rules, respectively, 47 CFR §§ 0.11(a)(22), 0.311.
(Continued from previous page)                                                            
the increase; therefore, adjusted penalty levels will be up to 250 percent of the levels in effect on November 2, 2015.
28 U.S.C. § 2461 note (5). 
17
See 47 CFR § 0.111(a)(22).
18
47 CFR § 0.311.  Pursuant to Section 0.311, the Chief, Enforcement Bureau is delegated authority to perform all 
functions of the Bureau, described in Section 0.111 of the Commission’s rules, 47 CFR § 0.111, including 
performing rulemakings except for notices of proposed rulemakings and of inquiry and final orders in such 
proceedings.  See id. at § 0.311(a)(1).
19
The 2015 Inflation Adjustment Act provides that the statutory maximum forfeiture penalties shall be adjusted with 
an initial “catch-up” adjustment through interim final rulemaking. See 28 U.S.C. § 2461 note (4).
20
Pub. L. No. 96-354, 94 Stat. 1164 (codified at 5 U.S.C. §§ 601-612); see 5 U.S.C. §§ 603-604.
21
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.
22
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).
23
See 44 U.S.C. § 3506(c)(4).
Federal Communications Commission DA 16-644
4
12. IT IS FURTHER ORDERED THAT, pursuant to the Congressional Review Act, Pub. 
L. No. 104-121, 110 Stat. 868 (codified at 5 U.S.C. §§ 801-808), the Commission SHALL SEND a copy 
of this Order in a report to Congress and the Government Accountability Office, see 5 U.S.C. 
§ 801(a)(1)(A).
FEDERAL COMMUNICATIONS COMMISSION
Travis LeBlanc 
Chief
Enforcement Bureau
Federal Communications Commission DA 16-644
5
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) …………………. 
Sec. 386(a) Forfeitures (Ships) …………………. 
Sec. 386(b) Forfeitures (Ships) …………………. 
$11,362, $568/day
$11,362, $568/day
$22,723
$2,272/day
$2,272/day
$11,362/day
$117,742
$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
$9,468/day (owner)
$1,894 (vessel master)
$9,468/day (owner)
$1,894 (vessel master)
Federal Communications Commission DA 16-644
6
Sec. 634 Cable EEO ………………………….…. $839
(9) Inflation adjustments to the maximum forfeiture amount.
(i) Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 
Inflation Adjustment Act), 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 
for inflation with an initial “catch-up” adjustment through an interim final rulemaking and interim final 
rules published by July 1, 2016, to take effect by August 1, 2016.  Subsequent annual adjustments shall be 
published by January 15 each year. Catch-up adjustments will be based on the ‘cost-of-living adjustment’ 
(CPI), which is the percentage (if any) by which the CPI for October in the year of the previous 
adjustment exceeds the CPI for October 2015.  Annual inflation adjustments will be based on the 
percentage (if any) by which the CPI for October preceding the date of the adjustment exceeds the prior 
year’s CPI for October.  The Office of Management and Budget has provided “Table A: 2016 Civil 
Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year” (Table A) to determine the civil 
monetary penalty catch-up adjustment multiplier by calendar year.  The Catch-up adjustment is 
determined by 
(A) Identifying from Table A, column A the latest year the penalty level or penalty range was established 
or last adjusted by statute or regulation (other than pursuant to the Inflation Adjustment Act), and from 
column B, identifying the corresponding multiplier to adjust the penalty level or range for inflation; 
(B) Multiplying the corresponding amount from column B by the amount of the maximum penalty level 
or the range of minimum and maximum penalties as most recently established or adjusted by statute or 
regulation (other than pursuant to the Inflation Adjustment Act before November 2, 2015);
(C) Rounding to the nearest dollar; and
(D) Comparing the new amount or range of the penalty with the amount or range in the prior year to 
ensure the maximum increase is not more than 150 percent of the most recent levels.
(ii) The application of the inflation adjustments required by the 2015 Inflation Adjustment Act, 28 U.S.C. 
2461 note, results in the following adjusted statutory maximum forfeitures authorized by the 
Communications Act:
U.S. Code citation Maximum Penalty after
2015 Inflation Adjustment Act adjustment
($)
47 U.S.C. 202(c) …………………………………
47 U.S.C. 203(e) …………………………………
$11,362
$568
$11,362
$568
Federal Communications Commission DA 16-644
7
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) …………………………..
47 U.S.C. 503(b)(2)(B) ………………...………...
$22,723
$2,272
$2,272
$11,362
$117,742
$10,874
$32,622
$1,087,450
$9,468
$1,894
$9,468
$1,894
$47,340
$473,402
$189,361
$1,893,610
47 U.S.C. 503(b)(2)(C) ………………………….. $383,038
47 U.S.C. 503(b)(2)(D) …………………………..
$3,535,740
$18,936
47 U.S.C. 503(b)(2)(F)
47 U.S.C. 507(a) ………………...……………….
142,021
$108,745
$1,087,450
$1,875
47 U.S.C. 507(b) ……………………………….... $275
47 U.S.C. 554 ……………………………………. $839
* * * * *
Federal Communications Commission DA 16-644
8
THE FOLLOWING ATTACHMENTS WILL NOT APPEAR IN THE CFR
Federal Communications Commission DA 16-644
9
ATTACHMENT A
Table A:
2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year*
A B A B A B 
Year Multiplier Year Multiplier Year Multiplier 
1914* 23.54832 1948 9.74746 1982 2.42422 
1915 23.31745 1949 10.03536 1983 2.35483 
1916 21.04761 1950 9.66821 1984 2.25867 
1917 17.61763 1951 9.07779 1985 2.18802 
1918 14.86488 1952 8.90779 1986 2.15628 
1919 13.14022 1953 8.80881 1987 2.06278 
1920 11.95166 1954 8.87455 1988 1.97869 
1921 13.59074 1955 8.84156 1989 1.89361 
1922 14.24180 1956 8.64865 1990 1.78156 
1923 13.74786 1957 8.40417 1991 1.73099 
1924 13.82779 1958 8.22969 1992 1.67728 
1925 13.43718 1959 8.08973 1993 1.63238 
1926 13.51352 1960 7.98114 1994 1.59089 
1927 13.66885 1961 7.92793 1995 1.54742 
1928 13.82779 1962 7.82362 1996 1.50245 
1929 13.74786 1963 7.72201 1997 1.47177 
1930 14.41442 1964 7.64752 1998 1.45023 
1931 15.96228 1965 7.50278 1999 1.41402 
1932 17.88256 1966 7.22912 2000 1.36689 
1933 18.01803 1967 7.05751 2001 1.33842 
1934 17.61763 1968 6.73762 2002 1.31185 
1935 17.36044 1969 6.37635 2003 1.28561 
1936 16.98843 1970 6.03650 2004 1.24588 
1937 16.29027 1971 5.81511 2005 1.19397 
1938 16.98843 1972 5.62265 2006 1.17858 
1939 16.98843 1973 5.21575 2007 1.13833 
1940 16.98843 1974 4.65436 2008 1.09819 
1941 15.54497 1975 4.33220 2009 1.10020 
1942 14.24180 1976 4.10774 2010 1.08745 
1943 13.66885 1977 3.86101 2011 1.05042 
1944 13.43718 1978 3.54453 2012 1.02819 
1945 13.14022 1979 3.16274 2013 1.01838 
1946 11.43452 1980 2.80469 2014 1.00171 
1947 10.34078 1981 2.54645 2015 1.00000 
*Multipliers are based on the latest year when the penalty level was established (originally enacted by 
Congress) or last adjusted by statute or regulation (other than pursuant to the Inflation Adjustment Act 
before November 2, 2015).
** For penalties established or last adjusted prior to 1914, the multiplier for 1914 is used.
Federal Communications Commission DA 16-644
10
ATTACHMENT B
Section 1.80 Maximum Forfeiture Penalties and “Catchup” Penalties
U.S. Code Citation Maximum Forfeiture Penalty on 
November 2, 2015
Maximum Forfeiture “Catchup” 
Penalty
47 U.S.C. 202(c) $9,600
$530/day
$11,362
$568/day
47 U.S.C. 203(e) $9,600
$530/day
$11,362
$568/day
47 U.S.C. 205(b) $23,200 $22,723
47 U.S.C. 214(d) $1,320 $2,272
47 U.S.C. 219(b) $1,320 $2,272
47 U.S.C. 220(d) $9,600/day $11,362
47 U.S.C. 223(b) $80,000 $117,742
47 U.S.C. 227(e) $10,000/violation
$30,000/day for each day of 
continuing violation up to
$1,025,000 for any single act or 
failure to act
$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
47 U.S.C. 364(a) $7,500 $9,468
47 U.S.C. 364(b) $1,100 $1,894
47 U.S.C. 386(a) $7,500 $9,468
47 U.S.C. 386(b) $1,100 $1,894
47 U.S.C. 503(b)(2)(A) $37,500/violation or each day of 
a continuing violation
up to
$400,000 for any single act or 
failure to act
$47,340/violation or each day of 
a continuing violation
up to
$473,402 for any single act or 
failure to act
47 U.S.C. 503(b)(2)(B) $160,000/violation or each day 
of a continuing violation up to 
$1,575,000 for any single act or 
failure to act
$189,361/violation or each day 
of a continuing violation up to 
$1,893,610 for any single act or 
failure to act
47 U.S.C. 503(b)(2)(C) $350,000/violation or each day 
of a continuing violation up to
$3,300,000 for any single act or 
failure to act
$383,038/violation or each day 
of a continuing violation up to 
$3,535,740 for any single act or 
failure to act
47 U.S.C. 503(b)(2)(D) $16,000/violation or each day of 
a continuing violation
up to $122,500 for any single 
act or failure to act
$18,936/violation or each day of 
a continuing violation
up to $142,021 for any single 
act or failure to act
47 U.S.C. 503(b)(2)(F) $105,000/violation or each day 
of a continuing violation up to
$1,050,000 for any single act or 
failure to act
$108,745/violation or each day 
of a continuing violation up to
$1,087,450 for any single act or 
failure to act
47 U.S.C. 507(a) $750 $1,875
47 U.S.C. 507(b) $110 $275
47 U.S.C. 554 $650/day $839
Federal Communications Commission DA 16-644
11
ATTACHMENT C
The following illustrates the inflation adjustment calculation and maximum forfeiture penalty for 
violations of Section 205 of the Act.
24
  As the calculation below shows, the maximum penalty for these 
violations will increase from $12,000 to $22,723 when adjusted for inflation.
Step 1: Determine the year and amount that the maximum penalty level or the 
range of minimum and maximum penalties was established or last adjusted 
by statute or regulation (excluding any previous adjustments made under 
the Inflation Adjustment Act).  Then, identify the corresponding multiplier 
from Table A, Colum B.
Because the penalty for Section 205 was last established or adjusted in 1989, the 
applicable multiplier from Table A is 1.89361.
a. Year: 1989 b. Multiplier: 1.89361 c. Penalty Level or Range: $12,000
Step 2: Use the applicable multiplier (b.) to multiply the penalty level or range (c.) 
and achieve the penalty level or range adjusted for inflation (d.).  Round to 
the nearest dollar.
d. 1.89361 x $12,000 = $22,723 (rounded to the nearest dollar)
Step 3: Identify the penalty level(s) in effect on November 2, 2015, including 
Inflation Adjustment Act increases.
e. November 2, 2015, Penalty Level Range: $23,200
Step 4: Multiply the November 2, 2015 level(s) (e.) by 2.5 to achieve a 150 percent 
increase (f.). Round to the nearest dollar.
f. $23,200 x 2.5 = $58,000 (rounded to the nearest dollar)
                                                     
24
Section 205(b) establishes the civil monetary penalty that common carriers – or their officers, representatives, 
agents, receivers (or agents of receivers), trustees (or agents of trustees), lessees (or agents of lessees) – must pay for 
violations of orders the Commission issues under Section 205(a) with respect to just and reasonable charges, 
classifications, regulations, and practices.  See 47 U.S.C. § 205.
Federal Communications Commission DA 16-644
12
Step 5: Compare the amounts of (d.) and (f.). If the maximum penalty level or range 
in (d.) is larger than the maximum penalty level or range in (f.), the 150 
percent limit applies, and the penalty level or range in (f.) should be selected.
The new “Catchup” Penalty is $22,723 (the lesser of $22,723 or $58,000)