“What happens if regulatory policies for a business are violated?” This is a frequently asked question. This is also a very important question because if this occurs, it could result in fines or penalties. When a business breaks any laws, the government can either try to fine the business, or take it to court. If a business is fined, it will be required to pay costs and damages. If court proceedings occur, the outcome can be favorable or unfavorable for the government.
A business must follow all applicable laws. It must be aware of any and all changes that may affect its operations and customers.
So what happens if regulatory policies for a business are violated?
- First, the offending party must notify the U.S. Office of the Attorney General. Within a specific time frame, it must also advise the Attorney General of the number of copies of any records it needs. The offending party is then given a chance to amend or correct its actions. If it is unable to comply with the request, the government may file a lawsuit against the company. In fact, the U.S. government has done just that with regard to the Costco policy violation cited above.It is important to point out that the enforcement of these types of laws and regulations is a major responsibility of the Federal Trade Commission. Not only must the FTC do its job, but so must every other government agency that enacts or implements regulations related to business. Violations can result in significant fines and even jail time. Therefore, companies must be aware of what happens if regulatory policies for a business are violated.
- The second question that should be asked, what happens if a business owner is not in violation of any regulations and/or laws? For example, suppose that a customer purchases an item from your business and later complains about the quality of a product. Suppose also that you are not in violation of any laws regarding competitive bidding.
Is there any way that you can correct the situation before you lose a customer?
There are ways to keep customers happy while correcting problems that may arise. One way is to invest in additional training for all employees. Another is to hire an attorney who specializes in business law and knows how to navigate the maze of regulations that govern many businesses.