---
title: What To Do In An Era of Rising Fines…
description: What To Do In An Era of Rising Fines…
image: https://go.adherent.com/hubfs/Imported_Blog_Media/Blog-Rising-Fines2.jpg
---

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# What To Do In An Era of Rising Fines…

---

##### 27 August 2015

[![Non-compliance penalty](https://go.adherent.com/hs-fs/hubfs/Imported_Blog_Media/Blog-Rising-Fines2.jpg?width=150&height=125&name=Blog-Rising-Fines2.jpg)](https://go.adherent.com/hubfs/Imported_Blog_Media/Blog-Rising-Fines2.jpg)It’s official, fines for breaches of consumer protection regulations are on the increase. In the US, the [average civil penalty imposed by the CPSC](http://www.cpsc.gov/en/business--manufacturing/civil-and-criminal-penalties/) (Consumer Product Safety Commission)has risen from $1.435 million in 2014 to $2.625 million so far in 2015. That’s a huge [83% increase](http://www.complianceandrisks.com/cpsc-penalty-average-jumps-83/). In the last year CPSC announced their desire to push penalties higher. Given that the cap was raised more than eight-fold in 2008, there is head-room for substantial further increases.

**How can your company avoid, or at least mitigate such huge payouts and the inevitable accompanying reputational and brand damage?**

The recommendation of the CPSC is to provide for the setting up of a compliance program (or **Compliance Management System (CMS)**, as described by the new standard, **ISO 19600**). Such a CMS can provides evidence as to having taking reasonable measures should it come to such a case. An effective CMS also offers the best chance of avoiding such a regulatory breach in the first place.

An effective CMS will ensure that the focus and resources of the company are aligned in order to make sure that all regulatory requirements are being met by the company and its products.

Making a defense in the absence of a CMS is becoming less tenable as authorities come to expect one as a minimum. The financial business case for putting in place such a system is significantly increased by rising penalties and the trend is only going one way.

### Written by [Karl Dowling](https://go.adherent.com/commentary-analysis-old/author/karl-dowling)

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