Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act …show more content…
Individuals in the company who violate the act may be fined up to $100,000, which cannot be paid for by the company, and even face imprisonment for up to five years.
This act as a significant impact on the US commerce because some of these companies, some of which we use their products, are still conducting in some form of bribery in foreign countries. Bribery itself in this country, is conducted by many companies trying to get ahead of the competition. They either pay money to government officials or shower them with luxurious gifts and vacations to tropical beaches, just to get that licenses or that law overturned, anything to get ahead. A lot of companies that conduct business legally are in a disadvantage because there are still companies violating the act as I type this words. Perfect example of this is how major corporation Avon, recently got caught violation the Foreign Corrupt Policy Act. In China, laws prohibit sales of products by individuals, meaning no door to door sales, which is Avon's primary source of retail. China gave Avon the first direct sale license of its kind. Avon now is accused of bribing Chinese government officials in order to get the license. The Act is enforce by the Justice Department and the Securities and Exchange Commission, which launched the investigation nearly 5 years ago.
I feel that it is great that this act is in effect and that other countries have adopted some form of it as well. I feel it helps