Black Friday sale and misleading discounts being advertised

There used to be a saying long ago - crime doesn’t pay. In the US business world these days, crime pays handsomely.

Years ago whenever a business was found to have violated consumer protection laws the first step in determining the consequences was known as ‘disgorgement.’ Only after that was the ‘fine’ or punishment determined.

Disgorgement happened when the court determined how much money a company had made from their illegal activity. The company was then required to either return 100% of the ill-gotten gains to the consumers that it defrauded or turn that money over to the courts. Once that was calculated out, fines were imposed that were separate from that money. So if a company made 10 million from something that violated the law, the first thing that happened was that they lost that 10 million. Then they had to pay a fine, for example 1 million.

The result (and the intent) was that the company would ALWAYS lose money if it engaged in illegal activity. Over time, big donors (in other words, the owners of large corporations) began to hold sway over judges by simply making it perfectly clear that they would not donate to any judge who actually disgorged companies that violated the law - and lo and behold the process has mostly simply went away now. The same company that in the past would have to forfeit the 10 million and lose another million on top of that now just loses the 1 million and still keeps 9 million.

And the end result is that crime now pays very well for corporations.

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