A civil penalty is a monetary sanction imposed by an agency or a court for a violation of a statute or regulation, paid to the government. It is distinct from compensation to injured parties.
Statutes set the maximum amounts, often per violation and per day, and agencies exercise discretion within the range. The amounts actually imposed are typically a fraction of the theoretical maximum and depend on the facts, cooperation and ability to pay.
Penalty distributions by agency and violation type are measurable from the public record, which lets a respondent or a counterparty see the range of past outcomes.
A civil penalty is not criminal punishment and not disgorgement. It punishes and deters. Disgorgement removes the gain.
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