Inflationary adjustments to civil monetary penalties take effect less than six months after last increase – Consumer Law

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This week, the Department of Justice (“DOJ”) released inflationary adjustments to civil monetary penalties. This increase takes effect less than six months after the last increase and indicates that the DOJ is eager to return to a more steady pace after a period of less frequent inflationary adjustments (see here). The DOJ is likely keen to implement sanctions that reflect the rising rate of inflation, which is currently at a forty-year high. As previously reported, the Balanced Budget Act of 2015 (BBA) provides for federal agencies to make inflationary adjustments to civil monetary penalties on January 15 of each year to account for inflation using calculations based on Bureau of Labor Statistics Consumer Price Index. After an inflationary update in January 2018, only two updates have taken place so far: an update in June 2020 and a recent update in December 2021. Revised penalties will be assessed for violations that occurred before the adjustment, but are assessed after May 9. , 2022. Effective May 9, 2022, the minimum fine of $11,803 under the False Claims Act increased to $12,537 per claim. The maximum fine has been increased from $23,607 to $25,076 per claim.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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