Antitrust, by Amy Klobuchar: on Crime

Increase fines on cartels engaging in price fixing

Consider this: cartel fines have long been calculated on the basis of a US Sentencing Commission formula. That formula is predicated on an estimate "that the average gain from price fixing is 10% of the selling price." However, empirical data shows that the median cartel overcharge over the last twenty years has been more than double that figure, 22%, with the mean, or average overcharge calculated to be 49%. Some cartels have raised prices substantially for products or services, leading to a higher figure. In short, today's fines are not properly calibrated to remediating the harm. At a minimum, the US Sentencing Commission should double its current presumption that cartels raise prices by an average of 10%. This would increase criminal fines substantially while serving as a deterrent to future cartel activity. White collar offenders may not be committing murders, but all too often they are getting away with murder when it comes to jacking up prices on unsuspecting Americans. Source: Antitrust, by Amy Klobuchar, p.307 Apr 27, 2021

The above quotations are from Antitrust Taking on Monopoly Power from the Gilded Age to the Digital Age by Amy Klobuchar. Click here for definitions & background information on Crime. Click here for other issues (main summary page). Click here for more quotes by Amy Klobuchar on Crime.
*2020 Presidential contenders on Crime:*
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Page last updated: Nov 25, 2021