47 U.S.C. § 503 — Forfeitures

Page 262 TITLE 47—TELECOMMUNICATIONS § 502 or thing, in this chapter prohibited or declared to be unlawful, or who willfully and knowingly omits or fails to do any act, matter, or thing in this chapter required to be done, or willfully and knowingly causes or suffers such omission or failure, shall, upon conviction thereof, be pun- ished for such offense, for which no penalty (other than a forfeiture) is provided in this chap- ter, by a fine of not more than $10,000 or by im- prisonment for a term not exceeding one year, or both; except that any person, having been once convicted of an offense punishable under this section, who is subsequently convicted of violating any provision of this chapter punish- able under this section, shall be punished by a fine of not more than $10,000 or by imprisonment for a term not exceeding two years, or both. (June 19, 1934, ch. 652, title V, § 501, 48 Stat. 1100; Mar. 23, 1954, ch. 104, 68 Stat. 30.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act June 19, 1934, ch. 652, 48 Stat. 1064, known as the Communications Act of 1934, which is classified principally to this chapter. For complete classification of this Act to the Code, see section 609 of this title and Tables. AMENDMENTS 1954—Act Mar. 23, 1954, provided that any offense pun- ishable hereunder, except a second or subsequent of- fense, should constitute a misdemeanor rather than a felony, as those terms are defined in section 1 of Title 18, Crimes and Criminal Procedure. § 502. Violation of rules, regulations, etc. Any person who willfully and knowingly vio- lates any rule, regulation, restriction, or condi- tion made or imposed by the Commission under authority of this chapter, or any rule, regula- tion, restriction, or condition made or imposed by any international radio or wire communica- tions treaty or convention, or regulations an- nexed thereto, to which the United States is or may hereafter become a party, shall, in addition to any other penalties provided by law, be pun- ished, upon conviction thereof, by a fine of not more than $500 for each and every day during which such offense occurs. (June 19, 1934, ch. 652, title V, § 502, 48 Stat. 1100.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act June 19, 1934, ch. 652, 48 Stat. 1064, known as the Communications Act of 1934, which is classified principally to this chapter. For complete classification of this Act to the Code, see section 609 of this title and Tables. § 503. Forfeitures (a) Rebates and offsets Any person who shall deliver messages for interstate or foreign transmission to any car- rier, or for whom as sender or receiver, any such carrier shall transmit any interstate or foreign wire or radio communication, who shall know- ingly by employee, agent, officer, or otherwise, directly or indirectly, by or through any means or device whatsoever, receive or accept from such common carrier any sum of money or any other valuable consideration as a rebate or off- set against the regular charges for transmission of such messages as fixed by the schedules of charges provided for in this chapter, shall in ad- dition to any other penalty provided by this chapter forfeit to the United States a sum of money three times the amount of money so re- ceived or accepted and three times the value of any other consideration so received or accepted, to be ascertained by the trial court; and in the trial of said action all such rebates or other con- siderations so received or accepted for a period of six years prior to the commencement of the action, may be included therein, and the amount recovered shall be three times the total amount of money, or three times the total value of such consideration, so received or accepted, or both, as the case may be. (b) Activities constituting violations authorizing imposition of forfeiture penalty; amount of penalty; procedures applicable; persons sub- ject to penalty; liability exemption period (1) Any person who is determined by the Com- mission, in accordance with paragraph (3) or (4) of this subsection, to have— (A) willfully or repeatedly failed to comply substantially with the terms and conditions of any license, permit, certificate, or other in- strument or authorization issued by the Com- mission; (B) willfully or repeatedly failed to comply with any of the provisions of this chapter or of any rule, regulation, or order issued by the Commission under this chapter or under any treaty, convention, or other agreement to which the United States is a party and which is binding upon the United States; (C) violated any provision of section 317(c) or 509(a) of this title; or (D) violated any provision of section 1304, 1343, 1464, or 2252 of title 18; shall be liable to the United States for a for- feiture penalty. A forfeiture penalty under this subsection shall be in addition to any other pen- alty provided for by this chapter; except that this subsection shall not apply to any conduct which is subject to forfeiture under subchapter II, part II or III of subchapter III, or section 507 of this title. (2)(A) If the violator is (i) a broadcast station licensee or permittee, (ii) a cable television op- erator, or (iii) an applicant for any broadcast or cable television operator license, permit, certifi- cate, or other instrument or authorization issued by the Commission, the amount of any forfeiture penalty determined under this section shall not exceed $25,000 for each violation or each day of a continuing violation, except that the amount assessed for any continuing viola- tion shall not exceed a total of $250,000 for any single act or failure to act described in para- graph (1) of this subsection. (B) If the violator is a common carrier subject to the provisions of this chapter or an applicant for any common carrier license, permit, certifi- cate, or other instrument of authorization issued by the Commission, the amount of any Page 263 TITLE 47—TELECOMMUNICATIONS § 503 1 So in original. Following provision probably should be set flush with subpar. (C). forfeiture penalty determined under this sub- section shall not exceed $100,000 for each viola- tion or each day of a continuing violation, ex- cept that the amount assessed for any con- tinuing violation shall not exceed a total of $1,000,000 for any single act or failure to act de- scribed in paragraph (1) of this subsection. (C) Notwithstanding subparagraph (A), if the violator is— (i)(I) a broadcast station licensee or per- mittee; or (II) an applicant for any broadcast license, permit, certificate, or other instrument or au- thorization issued by the Commission; and (ii) determined by the Commission under paragraph (1) to have broadcast obscene, inde- cent, or profane language,1 the amount of any forfeiture penalty determined under this sub- section shall not exceed $325,000 for each viola- tion or each day of a continuing violation, ex- cept that the amount assessed for any con- tinuing violation shall not exceed a total of $3,000,000 for any single act or failure to act. (D) In any case not covered in subparagraph (A), (B), or (C), the amount of any forfeiture penalty determined under this subsection shall not exceed $10,000 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 $75,000 for any single act or failure to act described in paragraph (1) of this subsection. (E) The amount of such forfeiture penalty shall be assessed by the Commission, or its des- ignee, by written notice. In determining the amount of such a forfeiture penalty, the Com- mission or its designee shall take into account the nature, circumstances, extent, and gravity of the violation and, with respect to the viola- tor, the degree of culpability, any history of prior offenses, ability to pay, and such other matters as justice may require. (F) Subject to paragraph (5) of this section, if the violator is a manufacturer or service pro- vider subject to the requirements of section 255, 617, or 619 of this title, and is determined by the Commission to have violated any such require- ment, the manufacturer or provider shall be lia- ble to the United States for a forfeiture penalty of not more than $100,000 for each violation or each day of a continuing violation, except that the amount assessed for any continuing viola- tion shall not exceed a total of $1,000,000 for any single act or failure to act. (3)(A) At the discretion of the Commission, a forfeiture penalty may be determined against a person under this subsection after notice and an opportunity for a hearing before the Commis- sion or an administrative law judge thereof in accordance with section 554 of title 5. Any per- son against whom a forfeiture penalty is deter- mined under this paragraph may obtain review thereof pursuant to section 402(a) of this title. (B) If any person fails to pay an assessment of a forfeiture penalty determined under subpara- graph (A) of this paragraph, after it has become a final and unappealable order or after the ap- propriate court has entered final judgment in favor of the Commission, the Commission shall refer the matter to the Attorney General of the United States, who shall recover the amount as- sessed in any appropriate district court of the United States. In such action, the validity and appropriateness of the final order imposing the forfeiture penalty shall not be subject to review. (4) Except as provided in paragraph (3) of this subsection, no forfeiture penalty shall be im- posed under this subsection against any person unless and until— (A) the Commission issues a notice of appar- ent liability, in writing, with respect to such person; (B) such notice has been received by such person, or until the Commission has sent such notice to the last known address of such per- son, by registered or certified mail; and (C) such person is granted an opportunity to show, in writing, within such reasonable pe- riod of time as the Commission prescribes by rule or regulation, why no such forfeiture pen- alty should be imposed. Such a notice shall (i) identify each specific pro- vision, term, and condition of any Act, rule, reg- ulation, order, treaty, convention, or other agreement, license, permit, certificate, instru- ment, or authorization which such person appar- ently violated or with which such person appar- ently failed to comply; (ii) set forth the nature of the act or omission charged against such per- son and the facts upon which such charge is based; and (iii) state the date on which such con- duct occurred. Any forfeiture penalty deter- mined under this paragraph shall be recoverable pursuant to section 504(a) of this title. (5) No forfeiture liability shall be determined under this subsection against any person, if such person does not hold a license, permit, certifi- cate, or other authorization issued by the Com- mission, and if such person is not an applicant for a license, permit, certificate, or other au- thorization issued by the Commission, unless, prior to the notice required by paragraph (3) of this subsection or the notice of apparent liabil- ity required by paragraph (4) of this subsection, such person (A) is sent a citation of the viola- tion charged; (B) is given a reasonable oppor- tunity for a personal interview with an official of the Commission, at the field office of the Commission which is nearest to such person’s place of residence; and (C) subsequently engages in conduct of the type described in such cita- tion. The provisions of this paragraph shall not apply, however, if the person involved is engag- ing in activities for which a license, permit, cer- tificate, or other authorization is required, or is a cable television system operator, if the person involved is transmitting on frequencies assigned for use in a service in which individual station operation is authorized by rule pursuant to sec- tion 307(e) of this title, or in the case of viola- tions of section 303(q) of this title, if the person involved is a nonlicensee tower owner who has previously received notice of the obligations im- posed by section 303(q) of this title from the Commission or the permittee or licensee who uses that tower. Whenever the requirements of this paragraph are satisfied with respect to a particular person, such person shall not be enti- tled to receive any additional citation of the Page 264 TITLE 47—TELECOMMUNICATIONS § 503 violation charged, with respect to any conduct of the type described in the citation sent under this paragraph. (6) No forfeiture penalty shall be determined or imposed against any person under this sub- section if— (A) such person holds a broadcast station li- cense issued under subchapter III of this chap- ter and if the violation charged occurred— (i) more than 1 year prior to the date of issuance of the required notice or notice of apparent liability; or (ii) prior to the date of commencement of the current term of such license, whichever is earlier; or (B) such person does not hold a broadcast station license issued under subchapter III of this chapter and if the violation charged oc- curred more than 1 year prior to the date of issuance of the required notice or notice of ap- parent liability. For purposes of this paragraph, ‘‘date of com- mencement of the current term of such license’’ 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 com- menced as a result of continuing a license in ef- fect under section 307(c) of this title pending de- cision on an application for renewal of the li- cense. (June 19, 1934, ch. 652, title V, § 503, 48 Stat. 1101; Pub. L. 86–752, § 7(a), Sept. 13, 1960, 74 Stat. 894; Pub. L. 95–234, § 2, Feb. 21, 1978, 92 Stat. 33; Pub. L. 96–507, § 2(b), Dec. 8, 1980, 94 Stat. 2747; Pub. L. 97–259, title I, § 124, Sept. 13, 1982, 96 Stat. 1098; Pub. L. 98–214, § 4(b), Dec. 8, 1983, 97 Stat. 1468; Pub. L. 101–239, title III, § 3002(i), Dec. 19, 1989, 103 Stat. 2131; Pub. L. 101–396, § 10, Sept. 28, 1990, 104 Stat. 851; Pub. L. 102–538, title II, §§ 206, 210(b), Oct. 27, 1992, 106 Stat. 3543, 3544; Pub. L. 109–235, § 2, June 15, 2006, 120 Stat. 491; Pub. L. 110–385, title II, § 221, Oct. 10, 2008, 122 Stat. 4105; Pub. L. 111–260, title I, § 104(c), Oct. 8, 2010, 124 Stat. 2761.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act June 19, 1934, ch. 652, 48 Stat. 1064, known as the Communications Act of 1934, which is classified principally to this chapter. For complete classification of this Act to the Code, see section 609 of this title and Tables. Parts II and III of subchapter III, referred to in sub- sec. (b)(1), are classified to sections 351 et seq. and 381 et seq., respectively, of this title. AMENDMENTS 2010—Subsec. (b)(2)(F). Pub. L. 111–260 added subpar. (F). 2008—Subsec. (b)(1)(D). Pub. L. 110–385 substituted ‘‘1464, or 2252’’ for ‘‘or 1464’’. 2006—Subsec. (b)(2)(C). Pub. L. 109–235, § 2(2), added subpar. (C). Former subpar. (C) redesignated (D). Subsec. (b)(2)(D). Pub. L. 109–235, § 2(1), (3), redesig- nated subpar. (C) as (D) and substituted ‘‘subparagraph (A), (B), or (C)’’ for ‘‘subparagraph (A) or (B)’’. Former subpar. (D) redesignated (E). Subsec. (b)(2)(E). Pub. L. 109–235, § (2)(1), redesignated subpar. (D) as (E). 1992—Subsec. (b)(5). Pub. L. 102–538, § 210(b), sub- stituted ‘‘system operator,’’ for ‘‘system operator or’’ and inserted ‘‘, or in the case of violations of section 303(q) of this title, if the person involved is a non- licensee tower owner who has previously received no- tice of the obligations imposed by section 303(q) of this title from the Commission or the permittee or licensee who uses that tower’’ after ‘‘section 307(e) of this title’’. Subsec. (b)(6). Pub. L. 102–538, § 206(2), inserted at end ‘‘For purposes of this paragraph, ‘date of commence- ment of the current term of such license’ 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) of this title pend- ing decision on an application for renewal of the li- cense.’’ Subsec. (b)(6)(A). Pub. L. 102–538, § 206(1), struck out ‘‘so long as such violation occurred within 3 years prior to the date of issuance of such required notice’’ after ‘‘whichever is earlier’’. 1990—Subsec. (b)(5). Pub. L. 101–396 inserted ‘‘and if such person is not an applicant for a license, permit, certificate, or other authorization issued by the Com- mission,’’ before ‘‘unless, prior’’. 1989—Subsec. (b)(1), (2). Pub. L. 101–239 inserted ‘‘(1)’’ before ‘‘Any person who’’ in first par., added par. (2), and struck out former par. (2) thereby resulting in in- creasing penalty if violator is a common carrier from $20,000 to $100,000 per day to a maximum of $1,000,000 per act and penalty if violator is a broadcast station li- censee or cable television operator from $20,000 to $25,000 per day to a maximum of $250,000 per act, mak- ing such penalty also applicable to television operator applicants, and increasing penalty in all other cases from $5,000 to $10,000 per day to a maximum of $75,000. 1983—Subsec. (b)(5). Pub. L. 98–214 inserted ‘‘or if the person involved is transmitting on frequencies assigned for use in a service in which individual station oper- ation is authorized by rule pursuant to section 307(e) of this title’’. 1982—Subsec. (b)(5). Pub. L. 97–259 inserted ‘‘, or is a cable television system operator’’ after ‘‘other author- ization is required’’. 1980—Subsec. (b). Pub. L. 96–507 conformed references in first paragraph to sections 509(a) and 507 of this title to reflect renumbering of those sections which required no change in text. 1978—Subsec. (b). Pub. L. 95–234 substituted provi- sions relating to activities making persons liable for forfeiture penalties, amounts of forfeiture penalties, procedures applicable for imposition of forfeiture pen- alties, and exemptions from liability from imposition of forfeiture penalties, for provisions relating to activi- ties of licensees or permittees constituting violations and authorizing forfeiture to the United States of a sum not to exceed $1,000 for each separate offense, pro- cedures applicable for imposition of forfeiture liability, and limitations on imposition of forfeiture liability. 1960—Pub. L. 86–752 amended section catchline sub- stituting ‘‘Forfeitures’’ for ‘‘Rebates and offsets, for- feitures,’’, designated existing provisions as subsec. (a), and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–234 effective on thirtieth day after Feb. 21, 1978, except that the provisions of subsec. (b) of this section, as in effect on Feb. 21, 1978, shall continue to constitute the applicable law with re- spect to any act or omission which occurs prior to such thirtieth day, see section 7 of Pub. L. 95–234, set out as a note under section 152 of this title. DISCLAIMER FOR PRESS RELEASES REGARDING NOTICES OF APPARENT LIABILITY Pub. L. 115–141, div. P, title V, § 511, Mar. 23, 2018, 132 Stat. 1097, provided that: ‘‘The Commission [Federal Page 265 TITLE 47—TELECOMMUNICATIONS § 504 Communications Commission] shall include in any press release regarding the issuance of a notice of ap- parent liability under section 503(b)(4) of the Commu- nications Act of 1934 (47 U.S.C. 503(b)(4)) a disclaimer informing consumers that— ‘‘(1) the issuance of a notice of apparent liability should be treated only as allegations; and ‘‘(2) the amount of any forfeiture penalty proposed in a notice of apparent liability represents the max- imum penalty that the Commission may impose for the violations alleged in the notice of apparent liabil- ity.’’ § 504. Forfeitures (a) Recovery The forfeitures provided for in this chapter shall be payable into the Treasury of the United States, and shall be recoverable, except as oth- erwise provided with respect to a forfeiture pen- alty determined under section 503(b)(3) of this title, in a civil suit in the name of the United States brought in the district where the person or carrier has its principal operating office or in any district through which the line or system of the carrier runs: Provided, That any suit for the recovery of a forfeiture imposed pursuant to the provisions of this chapter shall be a trial de novo: Provided further, That in the case of for- feiture by a ship, said forfeiture may also be re- coverable by way of libel in any district in which such ship shall arrive or depart. Such for- feitures shall be in addition to any other general or specific penalties provided in this chapter. It shall be the duty of the various United States attorneys, under the direction of the Attorney General of the United States, to prosecute for the recovery of forfeitures under this chapter. The costs and expenses of such prosecutions shall be paid from the appropriation for the ex- penses of the courts of the United States. (b) Remission and mitigation The forfeitures imposed by subchapter II, parts II and III of subchapter III, and sections 503(b) and 507 of this title shall be subject to re- mission or mitigation by the Commission under such regulations and methods of ascertaining the facts as may seem to it advisable, and, if suit has been instituted, the Attorney General, upon request of the Commission, shall direct the discontinuance of any prosecution to recover such forfeitures: Provided, however, That no for- feiture shall be remitted or mitigated after de- termination by a court of competent jurisdic- tion. (c) Use of notice of apparent liability In any case where the Commission issues a no- tice of apparent liability looking toward the im- position of a forfeiture under this chapter, that fact shall not be used, in any other proceeding before the Commission, to the prejudice of the person to whom such notice was issued, unless (i) the forfeiture has been paid, or (ii) a court of competent jurisdiction has ordered payment of such forfeiture, and such order has become final. (June 19, 1934, ch. 652, title V, § 504, 48 Stat. 1101; May 20, 1937, ch. 229, § 14, 50 Stat. 197; June 25, 1948, ch. 646, § 1, 62 Stat. 909; Aug. 13, 1954, ch. 735, § 4, 68 Stat. 729; Aug. 6, 1956, ch. 973, § 2, 70 Stat. 1048; Pub. L. 86–752, § 7(b)–(d), Sept. 13, 1960, 74 Stat. 895; Pub. L. 87–448, § 2, May 11, 1962, 76 Stat. 69; Pub. L. 95–234, § 3, Feb. 21, 1978, 92 Stat. 35; Pub. L. 96–507, § 2(c), Dec. 8, 1980, 94 Stat. 2747.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) and (c), was in the original ‘‘this Act’’, meaning act June 19, 1934, ch. 652, 48 Stat. 1064, known as the Communications Act of 1934, which is classified principally to this chapter. For complete classification of this Act to the Code, see section 609 of this title and Tables. Parts II and III of subchapter III, referred to in sub- sec. (b), are classified to sections 351 et seq. and 381 et seq., respectively, of this title. AMENDMENTS 1980—Subsec. (b). Pub. L. 96–507 conformed reference to section 507 of this title to reflect renumbering of that section which required no change in text. 1978—Subsec. (a). Pub. L. 95–234, § 3(a), inserted in first sentence ‘‘, except as otherwise provided with re- spect to a forfeiture penalty determined under section 503(b)(3) of this title,’’ after ‘‘recoverable’’. Such word- ing was inserted only after the first reference to ‘‘re- coverable’’ as the probable intent of Congress. Subsec. (b). Pub. L. 95–234, § 3(b), inserted reference to subchapter II of this chapter and struck out reference to section 510 of this title and ‘‘, upon application therefor,’’ after ‘‘by the Commission’’. 1962—Subsec. (b). Pub. L. 87–448 empowered the Com- mission to remit or mitigate the forfeitures imposed by section 510 of this title. 1960—Subsec. (a). Pub. L. 86–752, § 7(b), inserted pro- viso that any suit for recovery of a forfeiture shall be a trial de novo. Subsec. (b). Pub. L. 86–752, § 7(c), substituted ‘‘sec- tions 503(b) and 507’’ for ‘‘section 507’’. Subsec. (c). Pub. L. 86–752, § 7(d), added subsec. (c). 1956—Subsec. (b). Act Aug. 6, 1956, inserted reference to part III of subchapter III. 1954—Subsec. (b). Act Aug. 13, 1954, inserted reference to section 507 of this title. 1937—Act May 20, 1937, designated existing provisions as subsec. (a), inserted proviso as to recovery of for- feiture in any district where a ship may arrive or de- part, and added subsec. (b). Statutory Notes and Related Subsidiaries CHANGE OF NAME Act June 25, 1948, eff. Sept. 1, 1948, substituted ‘‘United States attorneys’’ for ‘‘district attorneys’’. See section 541 of Title 28, Judiciary and Judicial Proce- dure, and Historical and Revision Notes thereunder. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–234 effective on thirtieth day after Feb. 21, 1978, see section 7 of Pub. L. 95–234, set out as a note under section 152 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Pub. L. 87–448, § 3, May 11, 1962, 76 Stat. 69, provided that: ‘‘The amendments made by this Act [enacting section 510 of this title and amending this section] shall take effect on the thirtieth day after the date of its en- actment [May 11, 1962].’’ EFFECTIVE DATE OF 1956 AMENDMENT Amendment by act Aug. 6, 1956, effective Mar. 1, 1957, see section 4 of act Aug. 6, 1956, set out as an Effective Date note under section 381 of this title. EFFECTIVE DATE OF 1954 AMENDMENT Amendment by act Aug. 13, 1954, effective Nov. 13, 1954, see section 6 of act Aug. 13, 1954, set out as an Ef- fective Date note under section 507 of this title.