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Six percent annual turnover for non-compliance seems too low.

Should be six percent for first offense, 12% for second, 25% for third, etc.

Until the company fixes it's compliance or becomes insolvent.



This opinion is terrifying to me. Why has our culture become so authoritarian?


The alternative is that corporations can (or rather, can continue to) factor in selectively breaking laws as a line item in their operating costs, which is unappealing for certain people for a variety of reasons.


Escalating punishment based on repeat offense until we find a level that is convincing enough to stop you from offending is not a particularly new idea.


If an individual continues to defy the law they get sent to jail. Why should corporations get away without similar escalating consequences?


because companies knowingly violate laws then get a slap on the wrist when they get caught and no one goes to jail when they are caught.


Fines are fine balance between motivational and liquidating.

I think 6% is quite a lot, even if one has 40% margin. Investors will be highly distraught and seek remedies from the current management. But for instance at 20% they will blame the regulators and push the company to fight in courts.

In any way, government wants to motivate change in behavior not taking companies out of business.


> In any way, government wants to motivate change in behavior not taking companies out of business.

Taking maliciously noncompliant comanies out of business can be a way to motivate others to not try to skirt the law.




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