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FTC Raises Certain Fines to $40,000 a Pop!

Tue, 07/05/2016 - 13:53

FTC Raises Certain Fines to $40,000 a Pop!

The FTC, in order to adjust for inflation over the last several years, has raised the civil penalty for certain law violations from the previously large $16,000 amount, to a staggering $40,000.  This is a per violation penalty, and adds up quickly when a company has even a minor error spread across a large volume of calls.  Among other violations, it appears the $40,000 applies to violations of the FTC's Telemarketing Sales Rule or TSR (including Do-Not-Call violations). 

Part of the penalty increase applies to violations of Section 5(m)(1)(a) of the FTC Act, which covers violations of the TSR.  Prior to February of 2009, the penalty was $11,000. Since February of 2009, the fine had been $16,000.  

Effective August 1, 2016, the penalty for violating the TSR, including DNC violations, will be a harsh $40,000 per call/violation. 

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