The Department of Commerce has issued a final rule to adjust civil monetary penalties (CMPs) for inflation, effective January 15, 2021. This adjustment is required by the Federal Civil Penalties Inflation Adjustment Act and aims to ensure the penalties continue to serve as a deterrent. The changes will only apply to penalties with a specific dollar amount and will affect those assessed after the effective date. The penalties are adjusted based on the cost-of-living increase from October 2019 to October 2020.
Simple Explanation
The Department of Commerce is making sure that fines people have to pay when they break certain rules stay tough by adjusting them for inflation, kind of like making sure a money jar still buys the same amount of candy as prices go up each year. This change will start on January 15, 2021, and is meant to keep the fines a good reminder to follow the rules.