15 U.S.C. § 3414: Enforcement

Summary

People must not break any part of this law or any rule or order made under it. If the agency in charge (the Commission) thinks someone is breaking or about to break the law, it can go to federal court to stop the conduct and make the person obey the law. The President can also go to court to stop violations of emergency orders under sections 3362 and 3363. A court can quickly order someone to stop, force them to follow the law, and require refunds or repayments without requiring a bond. The Commission may also send possible criminal evidence to the Attorney General. If a person knowingly breaks the law or its rules, the Commission can fine them up to $1,000,000 for each violation, and the President can assess up to $1,000,000 for violations of emergency orders. Each day of a continuing violation counts as a separate violation. The Commission must give notice before assessing a penalty, and if the penalty is unpaid after 60 days it can ask a court to review and enforce it. Penalties normally cannot cover violations more than 3 years before the notice, unless false or missing material facts were involved. For criminal cases, a knowing and willful violation can lead to a fine up to $1,000,000, up to 5 years in prison, or both. Breaking rules or orders can bring fines up to $50,000 per day, and violating emergency orders can bring up to $50,000 per violation. "Knowing" means either actual knowledge or what a reasonable person in the same situation would have known.

Title 15, §3414

Commerce and Trade, Source: USLM XML via OLRC

(a)General rule

It shall be unlawful for any person to violate any provision of this chapter or any rule or order under this chapter.

(b)Civil enforcement

(1)In general

Except as provided in paragraph (2), whenever it appears to the Commission that any person is engaged or about to engage in any act or practice which constitutes or will constitute a violation of any provision of this chapter, or of any rule or order thereunder, the Commission may bring an action in the District Court of the United States for the District of Columbia or any other appropriate district court of the United States to enjoin such act or practice and to enforce compliance with this chapter, or any rule or order thereunder.

(2)Enforcement of emergency orders

Whenever it appears to the President that any person has engaged, is engaged, or is about to engage in acts or practices constituting a violation of any order under section 3362 of this title or any order or supplemental order issued under section 3363 of this title, the President may bring a civil action in any appropriate district court of the United States to enjoin such acts or practices.

(3)Repealed. Pub. L. 101–60, § 3(a)(4)(B), July 26, 1989, 103 Stat. 158

(4)Relief available

In any action under paragraph (1) or (2), the court shall, upon a proper showing, issue a temporary restraining order or preliminary or permanent injunction without bond. In any such action, the court may also issue a mandatory injunction commanding any person to comply with any applicable provision of law, rule, or order, or ordering such other legal or equitable relief as the court determines appropriate, including refund or restitution.

(5)Criminal referral

The Commission may transmit such evidence as may be available concerning any acts or practices constituting any possible violations of the Federal antitrust laws to the Attorney General who may institute appropriate criminal proceedings.

(6)Civil penalties

(A)In general

Any person who knowingly violates any provision of this chapter, or any provision of any rule or order under this chapter, shall be subject to—

(i)except as provided in clause (ii) a civil penalty, which the Commission may assess, of not more than $1,000,000 for any one violation; and

(ii)a civil penalty, which the President may assess, of not more than $1,000,000, in the case of any violation of an order under section 3362 of this title or an order or supplemental order under section 3363 of this title.

(B)“Knowing” defined

For purposes of subparagraph (A) the term “knowing” means the having of— (i)

(ii)the constructive knowledge deemed to be possessed by a reasonable individual who acts under similar circumstances.

(C)Each day separate violation

For purposes of this paragraph, in the case of a continuing violation, each day of violation shall constitute a separate violation.

(D)Statute of limitations

No person shall be subject to any civil penalty under this paragraph with respect to any violation occurring more than 3 years before the date on which such person is provided notice of the proposed penalty under subparagraph (E). The preceding sentence shall not apply in any case in which an untrue statement of material fact was made to the Commission or a State or Federal agency by, or acquiesced to by, the violator with respect to the acts or omissions constituting such violation, or if there was omitted a material fact necessary in order to make any statement made by, or acquiesced to by, the violator with respect to such acts or omissions not misleading in light of circumstances under such statement was made.

(E)Assessed by Commission

Before assessing any civil penalty under this paragraph, the Commission shall provide to such person notice of the proposed penalty. Following receipt of notice of the proposed penalty by such person, the Commission shall, by order, asssess such penalty.

(F)Judicial review

If the civil penalty has not been paid within 60 calendar days after the assessment order has been made under subparagraph (E), the Commission shall institute an action in the appropriate district court of the United States for an order affirming the assessment of the civil penalty. The court shall have authority to review de novo the law and the facts involved, and shall have jurisdiction to enter a judgment enforcing, modifying, and enforcing as so modified, or setting aside in whole or in part, such assessment.

(c)Criminal penalties

(1)Violations of chapter

Except in the case of violations covered under paragraph (3), any person who knowingly and willfully violates any provision of this chapter shall be subject to—

(A)a fine of not more than $1,000,000; or

(B)imprisonment for not more than 5 years; or

(C)both such fine and such imprisonment.

(2)Violation of rules or orders generally

Except in the case of violations covered under paragraph (3), any person who knowingly and willfully violates any rule or order under this chapter (other than an order of the Commission assessing a civil penalty under subsection (b)(4)(E)), shall be subject to a fine of not more than $50,000 for each day on which the offense occurs.

(3)Violations of emergency orders

Any person who knowingly and willfully violates an order under section 3362 of this title or an order or supplemental order under section 3363 of this title shall be fined not more than $50,000 for each violation.

(4)Each day separate violation

For purposes of this subsection, each day of violation shall constitute a separate violation.

(5)“Knowingly” defined

For purposes of this subsection, the term “knowingly”, when used with respect to any act or omission by any person, means such person—

(A)had actual knowledge; or

(B)had constructive knowledge deemed to be possessed by a reasonable individual who acts under similar circumstances.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2005—Subsec. (b)(6)(A). Pub. L. 109–58, § 314(b)(2), substituted “$1,000,000” for “$5,000” in cl. (i) and “$1,000,000” for “$25,000” in cl. (ii). Subsec. (c)(1). Pub. L. 109–58, § 314(a)(2)(A), substituted “$1,000,000” for “$5,000” in subpar. (A) and “5 years” for “two years” in subpar. (B). Subsec. (c)(2). Pub. L. 109–58, § 314(a)(2)(B), substituted “$50,000 for each day on which the offense occurs” for “$500 for each violation”. 1989—Subsec. (a). Pub. L. 101–60, § 3(b)(6), struck out par. (2) designation and par. (1) making it unlawful to sell natural gas at a first sale price in excess of any applicable maximum lawful price under this chapter. Subsec. (b). Pub. L. 101–60, § 3(a)(4), substituted “paragraph (2)” for “paragraphs (2) and (3)” in par. (1), struck out par. (3) which related to

Enforcement

of incremental pricing, and substituted “paragraph (1) or (2)” for “paragraph (1), (2), or (3)” in par. (4).

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 AmendmentAmendment by section 3(b)(6) of Pub. L. 101–60 effective Jan. 1, 1993, see section 3(b) of Pub. L. 101–60, set out as a note under section 3372 of this title.

§3414 Enforcement