All businesses have a duty to act lawfully, but there are more practical reasons why compliance is particularly important.
Compliance ensures that businesses that comply with the law will avoid the various consequences of non-compliance. These are potentially very serious and include the following:
- investigation by the Government, the sector regulator or the European Commission, which may require significant management input
- a financial penalty
- agreements being void and unenforceable
- adverse publicity, or
- the possibility of being sued for damages by those harmed by the unlawful behaviour.
Furthermore, a business that has taken adequate steps to achieve compliance but has nonetheless committed an infringement may still receive a financial penalty.
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