Manufacturing & Distribution Client Advisory – January 2017

    By Patrick H. O’Donnell, Stephen E. Story, Manufacturing & Distribution

    Why You Need a Compliance Program

    Every manufacturer needs a compliance program. Period.

    Almost every day, somewhere, a manufacturer violates a law that, once discovered, causes substantial expense and disruption to its operations. Legal fees, criminal fines and civil damages, debarment from government contracts, adverse publicity, are but a few of the major consequences of such violations of the law.

    The laws with which manufacturers must comply are varied and complex. Antitrust laws, Foreign Corrupt Practices Act, government contracting rules, export laws and regulations such as ITAR, EAR, and a web of boycott/embargo laws and Executive Orders, and California Proposition 65, to name only a few.

    Compliance programs are a relatively inexpensive and efficient way to minimize the likelihood of such violations, and their effects. First, a compliance program can help to promote a culture of compliance, and minimize the likelihood of a manufacturer violating the law in the first place. Second, if the manufacturer does nonetheless violate a law, an effective compliance program will be taken into account by the government and Courts as a mitigating factor with regard to enforcement actions taken and penalties assessed against the manufacturer.

    Kaufman & Canoles has substantial experience preparing and implementing compliance programs for our manufacturing clients. Such programs are not expensive, and will pay for themselves many times over if they prevent even one infraction.

    Please call or email Steve Story at (757.624.3257; or Pat ODonnell (757.624.3305; if you would like to discuss a compliance program for your company.

    The contents of this publication are intended for general information only and should not be construed as legal advice or a legal opinion on specific facts and circumstances. Copyright 2024.