Who imposes penalties for not complying with FACTA?

• A. FTC and other federal regulators depending on the entity; penalties vary.
• B. State regulators only.
• C. Consumers.
• D. Employers.

Answer: (D)

The enforcement and penalties for FACTA come from government regulators, not private parties. The Federal Trade Commission is the primary enforcer, but other federal regulators can impose penalties for violations that fall under their jurisdiction, and state regulators may also take action where state law applies. The amount and type of penalties vary depending on the violator and the specific enforcement agency involved. Consumers aren’t the ones who impose penalties, and while private actions by consumers can seek damages for certain violations, the formal penalties referenced in FACTA enforcement come from these regulatory authorities.