What is an important factor to consider when assessing penalties for noncompliance?

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An important factor to consider when assessing penalties for noncompliance is that they need to be large enough to deter future violations. The rationale behind this is that penalties serve not only as a punishment for past noncompliance but also as a preventive measure to discourage individuals or organizations from committing similar offenses in the future. When penalties are significant, they send a clear message about the consequences of noncompliance and help promote adherence to regulations. This deterrent effect is crucial for maintaining compliance and protecting public interests, such as environmental safety and public health.

In contrast, random imposition of penalties doesn't serve the purpose of deterring specific behaviors, and lack of uniformity in penalties can lead to confusion and perceptions of unfairness. Additionally, disregarding the recovery of economic benefits ignores a key aspect of compliance; it is essential to ensure that violators do not gain unfair advantages through noncompliance.

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