§ 1.80   Forfeiture proceedings.

   (a)  Persons against whom and violations for which a forfeiture may be
   assessed. A forfeiture penalty may be assessed against any person found to
   have:

   (1) Willfully or repeatedly failed to comply substantially with the terms
   and conditions of any license, permit, certificate, or other instrument of
   authorization issued by the Commission;

   (2) Willfully or repeatedly failed to comply with any of the provisions of
   the Communications Act of 1934, as amended; or of any rule, regulation or
   order  issued  by  the  Commission under that Act or under any treaty,
   convention, or other agreement to which the United States is a party and
   which is binding on the United States;

   (3) Violated any provision of section 317(c) or 508(a) of the Communications
   Act;

   (4) Violated any provision of section 227(e) of the Communications Act or of
   the rules issued by the Commission under section 227(e) of that Act; or

   (5) Violated any provision of section 1304, 1343, or 1464 of Title 18,
   United States Code.

   (6) Violated any provision of section 6507 of the Middle Class Tax Relief
   and Job Creation Act of 2012 or any rule, regulation, or order issued by the
   Commission under that statute.

   Note to paragraph (a): A forfeiture penalty assessed under this section is
   in addition to any other penalty provided for by the Communications Act,
   except that the penalties provided for in paragraphs (b)(1) through (4) of
   this section shall not apply to conduct which is subject to a forfeiture
   penalty or fine under sections 202(c), 203(e), 205(b), 214(d), 219(b),
   220(d),  223(b),  364(a),  364(b), 386(a), 386(b), 506, and 634 of the
   Communications Act. The remaining provisions of this section are applicable
   to such conduct.

   (b) Limits on the amount of forfeiture assessed. (1) If the violator is a
   broadcast station licensee or permittee, a cable television operator, or an
   applicant for any broadcast or cable television operator license, permit,
   certificate, or other instrument of authorization issued by the Commission,
   except as otherwise noted in this paragraph, the forfeiture penalty under
   this section shall not exceed $37,500 for each violation or each day of a
   continuing violation, except that the amount assessed for any continuing
   violation shall not exceed a total of $400,000 for any single act or failure
   to act described in paragraph (a) of this section. There is no limit on
   forfeiture assessments for EEO violations by cable operators that occur
   after notification by the Commission of a potential violation. See section
   634(f)(2) of the Communications Act. Notwithstanding the foregoing in this
   section, if the violator is a broadcast station licensee or permittee or an
   applicant  for  any  broadcast  license, permit, certificate, or other
   instrument of authorization issued by the Commission, and if the violator is
   determined by the Commission to have broadcast obscene, indecent, or profane
   material,  the  forfeiture penalty under this section shall not exceed
   $350,000 for each violation or each day of a continuing violation, except
   that the amount assessed for any continuing violation shall not exceed a
   total  of $3,300,000 for any single act or failure to act described in
   paragraph (a) of this section.

   (2) If the violator is a common carrier subject to the provisions of the
   Communications Act or an applicant for any common carrier license, permit,
   certificate, or other instrument of authorization issued by the Commission,
   the amount of any forfeiture penalty determined under this section shall not
   exceed $160,000 for each violation or each day of a continuing violation,
   except that the amount assessed for any continuing violation shall not
   exceed a total of $1,575,000 for any single act or failure to act described
   in paragraph (a) of this section.

   (3) If the violator is a manufacturer or service provider subject to the
   requirements of section 255, 716, or 718 of the Communications Act, and is
   determined by the Commission to have violated any such requirement, the
   manufacturer or service provider shall be liable to the United States for a
   forfeiture penalty of not more than $105,000 for each violation or each day
   of  a  continuing  violation,  except that the amount assessed for any
   continuing violation shall not exceed a total of $1,050,000 for any single
   act or failure to act.

   (4)  Any  person  determined  to  have  violated section 227(e) of the
   Communications Act or the rules issued by the Commission under section
   227(e) of the Communications Act shall be liable to the United States for a
   forfeiture penalty of not more than $10,000 for each violation or three
   times that amount for each day of a continuing violation, except that the
   amount assessed for any continuing violation shall not exceed a total of
   $1,025,000 for any single act or failure to act. Such penalty shall be in
   addition to any other forfeiture penalty provided for by the Communications
   Act.

   (5) If a violator who is granted access to the Do-Not-Call registry of
   public safety answering points discloses or disseminates any registered
   telephone number without authorization, in violation of section 6507(b)(4)
   of  the  Middle  Class  Tax Relief and Job Creation Act of 2012 or the
   Commission's implementing rules, the monetary penalty for such unauthorized
   disclosure or dissemination of a telephone number from the registry shall be
   not less than $100,000 per incident nor more than $1,000,000 per incident
   depending upon whether the conduct leading to the violation was negligent,
   grossly  negligent, reckless, or willful, and depending on whether the
   violation was a first or subsequent offense.

   (6) If a violator uses automatic dialing equipment to contact a telephone
   number on the Do-Not-Call registry of public safety answering points, in
   violation of section 6507(b)(5) of the Middle Class Tax Relief and Job
   Creation Act of 2012 or the Commission's implementing rules, the monetary
   penalty  for contacting such a telephone number shall be not less than
   $10,000 per call nor more than $100,000 per call depending on whether the
   violation  was negligent, grossly negligent, reckless, or willful, and
   depending on whether the violation was a first or subsequent offense.

   (7) In any case not covered in paragraphs (b)(1) through (b)(6) of this
   section, the amount of any forfeiture penalty determined under this section
   shall not exceed $16,000 for each violation or each day of a continuing
   violation, except that the amount assessed for any continuing violation
   shall not exceed a total of $122,500 for any single act or failure to act
   described in paragraph (a) of this section.

   (8) Factors considered in determining the amount of the forfeiture penalty.
   In determining the amount of the forfeiture penalty, the Commission or its
   designee  will take into account the nature, circumstances, extent and
   gravity of the violations and, with respect to the violator, the degree of
   culpability, any history of prior offenses, ability to pay, and such other
   matters as justice may require.

   Note  to  paragraph  (b)(8): Guidelines for Assessing Forfeitures. The
   Commission and its staff may use these guidelines in particular cases. The
   Commission and its staff retain the discretion to issue a higher or lower
   forfeiture than provided in the guidelines, to issue no forfeiture at all,
   or to apply alternative or additional sanctions as permitted by the statute.
   The forfeiture ceilings per violation or per day for a continuing violation
   stated in section 503 of the Communications Act and the Commission's rules
   are  described in § 1.80(b)(9). These statutory maxima became effective
   September 13, 2013. Forfeitures issued under other sections of the Act are
   dealt with separately in section III of this note.

Section I. Base Amounts for Section 503 Forfeitures

   Forfeitures Violation amount
   Misrepresentation/lack of candor (^1)
   Construction and/or operation without an instrument of authorization for the
   service $10,000
   Failure to comply with prescribed lighting and/or marking 10,000
   Violation of public file rules 10,000
   Violation of political rules: reasonable access, lowest unit charge, equal
   opportunity, and discrimination 9,000
   Unauthorized substantial transfer of control 8,000
   Violation  of  children's  television commercialization or programming
   requirements 8,000
   Violations of rules relating to distress and safety frequencies 8,000
   False distress communications 8,000
   EAS equipment not installed or operational 8,000
   Alien ownership violation 8,000
   Failure to permit inspection 7,000
   Transmission of indecent/obscene materials 7,000
   Interference 7,000
   Importation or marketing of unauthorized equipment 7,000
   Exceeding of authorized antenna height 5,000
   Fraud by wire, radio or television 5,000
   Unauthorized discontinuance of service 5,000
   Use of unauthorized equipment 5,000
   Exceeding power limits 4,000
   Failure to respond to Commission communications 4,000
   Violation of sponsorship ID requirements 4,000
   Unauthorized emissions 4,000
   Using unauthorized frequency 4,000
   Failure to engage in required frequency coordination 4,000
   Construction or operation at unauthorized location 4,000
   Violation  of  requirements pertaining to broadcasting of lotteries or
   contests 4,000
   Violation of transmitter control and metering requirements 3,000
   Failure to file required forms or information 3,000
   Failure to make required measurements or conduct required monitoring 2,000
   Failure to provide station ID 1,000
   Unauthorized pro forma transfer of control 1,000
   Failure to maintain required records 1,000

   ^1Statutory Maximum for each Service.

   Violations Unique to the Service
   Violation Services affected Amount
   Unauthorized conversion of long distance telephone service Common Carrier
   $40,000
   Violation of operator services requirements Common Carrier 7,000
   Violation of pay-per-call requirements Common Carrier 7,000
   Failure to implement rate reduction or refund order Cable 7,500
   Violation of cable program access rules Cable 7,500
   Violation of cable leased access rules Cable 7,500
   Violation of cable cross-ownership rules Cable 7,500
   Violation of cable broadcast carriage rules Cable 7,500
   Violation of pole attachment rules Cable 7,500
   Failure  to  maintain directional pattern within prescribed parameters
   Broadcast 7,000
   Violation of main studio rule Broadcast 7,000
   Violation of broadcast hoax rule Broadcast 7,000
   AM tower fencing Broadcast 7,000
   Broadcasting telephone conversations without authorization Broadcast 4,000
   Violation of enhanced underwriting requirements Broadcast 2,000

Section II. Adjustment Criteria for Section 503 Forfeitures

Upward Adjustment Criteria

   (1) Egregious misconduct.

   (2) Ability to pay/relative disincentive.

   (3) Intentional violation.

   (4) Substantial harm.

   (5) Prior violations of any FCC requirements.

   (6) Substantial economic gain.

   (7) Repeated or continuous violation.

Downward Adjustment Criteria

   (1) Minor violation.

   (2) Good faith or voluntary disclosure.

   (3) History of overall compliance.

   (4) Inability to pay.

Section III. Non-Section 503 Forfeitures That Are Affected by the Downward
Adjustment Factors

   Unlike section 503 of the Act, which establishes maximum forfeiture amounts,
   other sections of the Act, with two exceptions, state prescribed amounts of
   forfeitures for violations of the relevant section. These amounts are then
   subject  to  mitigation or remission under section 504 of the Act. One
   exception is section 223 of the Act, which provides a maximum forfeiture per
   day. For convenience, the Commission will treat this amount as if it were a
   prescribed base amount, subject to downward adjustments. The other exception
   is  section  227(e) of the Act, which provides maximum forfeitures per
   violation, and for continuing violations. The Commission will apply the
   factors set forth in section 503(b)(2)(E) of the Act and section III of this
   note to determine the amount of the penalty to assess in any particular
   situation. The following amounts are adjusted for inflation pursuant to the
   Debt  Collection Improvement Act of 1996 (DCIA), 28 U.S.C. 2461. These
   non-section 503 forfeitures may be adjusted downward using the “Downward
   Adjustment Criteria” shown for section 503 forfeitures in section II of this
   note.
   Violation Statutory amount
   ($)
   Sec. 202(c) Common Carrier Discrimination $9,600, 530/day.
   Sec. 203(e) Common Carrier Tariffs 9,600, 530/day.
   Sec. 205(b) Common Carrier Prescriptions 23,200.
   Sec. 214(d) Common Carrier Line Extensions 1,320/day.
   Sec. 219(b) Common Carrier Reports 1,320.
   Sec. 220(d) Common Carrier Records & Accounts 9,600/day.
   Sec. 223(b) Dial-a-Porn 80,000/day.
   Sec.  227(e)  10,000/violation.  30,000/day for each day of continuing
   violation, up to 1,025,000 for any single act or failure to act.
   Sec. 364(a) Forfeitures (Ships) 7,500 (owner).
   Sec. 364(b) Forfeitures (Ships) 1,100 (vessel master).
   Sec. 386(a) Forfeitures (Ships) 7,500/day (owner).
   Sec. 386(b) Forfeitures (Ships) 1,100 (vessel master).
   Sec. 634 Cable EEO 650/day.

   (9) Inflation adjustments to the maximum forfeiture amount. (i) Pursuant to
   the Debt Collection Improvement Act of 1996, Public Law 104-134 (110 Stat.
   1321-358),  which  amends the Federal Civil Monetary Penalty Inflation
   Adjustment Act of 1990, Public Law 101-410 (104 Stat. 890; 28 U.S.C. 2461
   note), the statutory maximum amount of a forfeiture penalty assessed under
   this section shall be adjusted for inflation at least once every four years
   using the method specified in the statute. This is to be done by determining
   the ‘cost-of-living adjustment’, which is the percentage (if any) by which
   the CPI for June of the preceding year exceeds the CPI for June of the year
   the forfeiture amount was last set or adjusted. The inflation adjustment is
   determined by multiplying the cost-of-living adjustment by the statutory
   maximum  amount.  Round  off  this result using the rules in paragraph
   (b)(9)(ii) of this section. Add the rounded result to the statutory maximum
   forfeiture penalty amount. The sum is the statutory maximum amount, adjusted
   for inflation.

   (ii) The rounding rules are as follows:

   (A) Round increase to the nearest multiple of $10 if the penalty is from $0
   to $100;

   (B) Round increase to the nearest multiple of $100 if the penalty is from
   $101 to $1,000;

   (C) Round increase to the nearest multiple of $1,000 if the penalty is from
   $1,001 to $10,000;

   (D) Round increase to the nearest multiple of $5,000 if the penalty is from
   $10,001 to $100,000;

   (E) Round increase to the nearest multiple of $10,000 if the penalty is from
   $100,001 to $200,000; or

   (F) Round increase to the nearest multiple of $25,000 if the penalty is over
   $200,001.

   (iii) The application of the inflation adjustments required by the DCIA, 28
   U.S.C. 2461, results in the following adjusted statutory maximum forfeitures
   authorized by the Communications Act:
   U.S. Code citation Maximum penalty after DCIA adjustment
   ($)
   47 U.S.C. 202(c) 9,600
   530
   47 U.S.C. 203(e) 9,600
   530
   47 U.S.C. 205(b) 23,200
   47 U.S.C. 214(d) 1,320
   47 U.S.C. 219(b) 1,320
   47 U.S.C. 220(d) 9,600
   47 U.S.C. 223(b) 80,000
   47 U.S.C. 227(e) 10,000
       30,000
       1,025,000
   47 U.S.C. 362(a) 7,500
   47 U.S.C. 362(b) 1,100
   47 U.S.C. 386(a) 7,500
   47 U.S.C. 386(b) 1,100
   47 U.S.C. 503(b)(2)(A) 37,500
   400,000
   47 U.S.C. 503(b)(2)(B) 160,000
   1,575,000
   47 U.S.C. 503(b)(2)(C) 350,000
   3,300,000
   47 U.S.C. 503(b)(2)(D) 16,000
   122,500
   47 U.S.C. 503(b)(2)(F) 105,000
   1,050,000
   47 U.S.C. 507(a) 750
   47 U.S.C. 507(b) 110
   47 U.S.C. 554 650

   Note  to  paragraph  (b)(9): Pursuant to Public Law 104-134, the first
   inflation adjustment cannot exceed 10 percent of the statutory maximum
   amount.

   (c) Limits on the time when a proceeding may be initiated. (1) In the case
   of  a broadcast station, no forfeiture penalty shall be imposed if the
   violation occurred more than 1 year prior to the issuance of the appropriate
   notice or prior to the date of commencement of the current license term,
   whichever is earlier. For purposes of this paragraph, “date of commencement
   of the current license term” means the date of commencement of the last term
   of  license  for  which the licensee has been granted a license by the
   Commission. A separate license term shall not be deemed to have commenced as
   a result of continuing a license in effect under section 307(c) pending
   decision on an application for renewal of the license.

   (2) In the case of a forfeiture imposed against a carrier under sections
   202(c), 203(e), and 220(d), no forfeiture will be imposed if the violation
   occurred more than 5 years prior to the issuance of a notice of apparent
   liability.

   (3) In the case of a forfeiture imposed under section 227(e), no forfeiture
   will be imposed if the violation occurred more than 2 years prior to the
   date on which the appropriate notice is issued.

   (4)  In  all other cases, no penalty shall be imposed if the violation
   occurred more than 1 year prior to the date on which the appropriate notice
   is issued.

   (d) Preliminary procedure in some cases; citations. Except for a forfeiture
   imposed under subsection 227(e)(5) of the Act, no forfeiture penalty shall
   be imposed upon any person under this section of the Act if such person does
   not hold a license, permit, certificate, or other authorization issued by
   the  Commission, and if such person is not an applicant for a license,
   permit,  certificate, or other authorization issued by the Commission,
   unless, prior to the issuance of the appropriate notice, such person:

   (1) Is sent a citation reciting the violation charged;

   (2)  Is  given a reasonable opportunity (usually 30 days) to request a
   personal interview with a Commission official, at the field office which is
   nearest to such person's place of residence; and

   (3) Subsequently engages in conduct of the type described in the citation.
   However, a forfeiture penalty may be imposed, if such person is engaged in
   (and the violation relates to) activities for which a license, permit,
   certificate, or other authorization is required or if such person is a cable
   television operator, or in the case of violations of section 303(q), if the
   person involved is a nonlicensee tower owner who has previously received
   notice of the obligations imposed by section 303(q) from the Commission or
   the permittee or licensee who uses that tower. Paragraph (c) of this section
   does not limit the issuance of citations. When the requirements of this
   paragraph have been satisfied with respect to a particular violation by a
   particular person, a forfeiture penalty may be imposed upon such person for
   conduct  of  the type described in the citation without issuance of an
   additional citation.

   (e)  Alternative  procedures.  In  the discretion of the Commission, a
   forfeiture proceeding may be initiated either: (1) By issuing a notice of
   apparent liability, in accordance with paragraph (f) of this section, or (2)
   a notice of opportunity for hearing, in accordance with paragraph (g).

   (f) Notice of apparent liability. Before imposing a forfeiture penalty under
   the provisions of this paragraph, the Commission or its designee will issue
   a written notice of apparent liability.

   (1) Content of notice. The notice of apparent liability will:

   (i) Identify each specific provision, term, or condition of any act, rule,
   regulation, order, treaty, convention, or other agreement, license, permit,
   certificate,  or  instrument of authorization which the respondent has
   apparently violated or with which he has failed to comply,

   (ii)  Set  forth the nature of the act or omission charged against the
   respondent and the facts upon which such charge is based,

   (iii) State the date(s) on which such conduct occurred, and

   (iv) Specify the amount of the apparent forfeiture penalty.

   (2)  Delivery.  The  notice  of apparent liability will be sent to the
   respondent, by certified mail, at his last known address (see § 1.5).

   (3) Response. The respondent will be afforded a reasonable period of time
   (usually 30 days from the date of the notice) to show, in writing, why a
   forfeiture penalty should not be imposed or should be reduced, or to pay the
   forfeiture. Any showing as to why the forfeiture should not be imposed or
   should  be reduced shall include a detailed factual statement and such
   documentation and affidavits as may be pertinent.

   (4) Forfeiture order. If the proposed forfeiture penalty is not paid in full
   in  response to the notice of apparent liability, the Commission, upon
   considering all relevant information available to it, will issue an order
   canceling or reducing the proposed forfeiture or requiring that it be paid
   in full and stating the date by which the forfeiture must be paid.

   (5) Judicial enforcement of forfeiture order. If the forfeiture is not paid,
   the case will be referred to the Department of Justice for collection under
   section 504(a) of the Communications Act.

   (g)  Notice of opportunity for hearing. The procedures set out in this
   paragraph will ordinarily be followed only when a hearing is being held for
   some reason other than the assessment of a forfeiture (such as, to determine
   whether a renewal application should be granted) and a forfeiture is to be
   considered as an alternative or in addition to any other Commission action.
   However, these procedures may be followed whenever the Commission, in its
   discretion, determines that they will better serve the ends of justice.

   (1)  Before imposing a forfeiture penalty under the provisions of this
   paragraph, the Commission will issue a notice of opportunity for hearing.
   The hearing will be a full evidentiary hearing before an administrative law
   judge,  conducted  under procedures set out in subpart B of this part,
   including procedures for appeal and review of initial decisions. A final
   Commission  order  assessing a forfeiture under the provisions of this
   paragraph  is  subject  to judicial review under section 402(a) of the
   Communications Act.

   (2) If, after a forfeiture penalty is imposed and not appealed or after a
   court enters final judgment in favor of the Commission, the forfeiture is
   not paid, the Commission will refer the matter to the Department of Justice
   for collection. In an action to recover the forfeiture, the validity and
   appropriateness of the order imposing the forfeiture are not subject to
   review.

   (3) Where the possible assessment of a forfeiture is an issue in a hearing
   case to determine which pending application should be granted, and the
   applicant  facing  a  potential  forfeiture is dismissed pursuant to a
   settlement agreement or otherwise, and the presiding judge has not made a
   determination on the forfeiture issue, the order of dismissal shall be
   forwarded to the attention of the full Commission. Within the time provided
   by  § 1.117,  the  Commission  may,  on  its own motion, proceed with a
   determination of whether a forfeiture against the dismissing applicant is
   warranted. If the Commission so proceeds, it will provide the applicant with
   a reasonable opportunity to respond to the forfeiture issue (see paragraph
   (f)(3)  of this section) and make a determination under the procedures
   outlined in paragraph (f) of this section.

   (h) Payment. The forfeiture should be paid by check or money order drawn to
   the order of the Federal Communications Commission. The Commission does not
   accept responsibility for cash payments sent through the mails. The check or
   money order should be mailed to: Federal Communications Commission, P.O. Box
   979088, St. Louis, MO 63197-9000.

   (i) Remission and mitigation. In its discretion, the Commission, or its
   designee, may remit or reduce any forfeiture imposed under this section.
   After issuance of a forfeiture order, any request that it do so shall be
   submitted as a petition for reconsideration pursuant to § 1.106.

   (j) Effective date. Amendments to paragraph (b) of this section implementing
   Pub. L. No. 101-239 are effective December 19, 1989.

   [ 43 FR 49308 , Oct. 23, 1978, as amended at  48 FR 15631 , Apr. 12, 1983;  50 FR 40855 , Oct. 7, 1985;  55 FR 25605 , June 22, 1990;  56 FR 25638 , June 5, 1991;
    57 FR 23161 , June 2, 1992;  57 FR 47006 , Oct. 14, 1992;  57 FR 48333 , Oct. 23,
   1992;  58 FR 6896 , Feb. 3, 1993;  58 FR 27473 , May 10, 1993;  62 FR 4918 , Feb.
   3, 1997;  62 FR 43475 , Aug. 14, 1997;  63 FR 26992 , May 15, 1998;  65 FR 60868 ,
   Oct. 13, 2000;  69 FR 47789 , Aug. 6, 2004;  72 FR 33914 , June 20, 2007;  73 FR 9018 , Feb. 19, 2008;  73 FR 44664 , July 31, 2008;  76 FR 43203 , July 20, 2011;
    76 FR 82388 , Dec. 30, 2011;  77 FR 71137 , Nov. 29, 2012;  78 FR 10100 , Feb.
   13, 2013;  78 FR 49371 , Aug. 14, 2013]

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