Civil Money Penalties Increased

Rockville, MD (Nov. 20)-The US Food and Drug Administration issued a direct final rule last week to adjust for inflation the maximum civil money penalty amounts for various civil money penalty authorities under the agency’s jurisdiction. The rule is meant to comply with the Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIAA), as amended, which calls for civil money penalties to be adjusted every four years. The rule does not adjust the civil money provisions enacted by the FDA Amendments Act of 2007 (FDAAA), according to the Nov. 12 Federal Register announcement of the final rule.

FCPIAA defines a civil monetary penalty as ‘‘any penalty, fine, or other sanction that-(A)(i) is for a specific monetary amount as provided by Federal law; or (ii) has a maximum amount provided for by Federal law; and (B) is assessed or enforced by an agency pursuant to Federal law; and (C) is assessed or enforced pursuant to an administrative proceeding or a civil action in the Federal Courts (28 USC 2461 note, section 3(2)),” according to Federal Register.

The new direct final rule revises the current list of statutory monetary penalties in 21 CFR Part 17 to include new penalties prescribed by the Federal Food, Drug, and Cosmetic Act, as amended by FDAAA in 2007. FDAAA penalties now account for inflation between June 2004 (the year of the last adjustment) and June 2007.