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Tire Registration Fines Increase by Inflation Adjustment

The Department of Transportation recently issued in the Federal Register a notice of “Revisions to Civil Penalty Amounts.”

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This notice increases penalty amounts for each violation of the Safety Act, under which tire registration falls. The current maximum penalty amount for each violation of the Safety Act is $22,329, and the new penalty is $22,723.

The current maximum penalty amount for a related series of violations of the Safety Act is $111,642,265. The new penalty is $113,611,635.

The Tire Industry Association has proposed that the new NHTSA regulation stipulate that there shall be no monetary fines for the first two violations; that monetary penalties could be assessed only after the dealer or distributor has been issued two written warnings; and that a third violation could not exceed $500 and that any subsequent penalty could not exceed $1,000; and that no more than one penalty could be assessed on a single day.

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