For the first time, the Antitrust Division of the Department of Justice has offered financial rewards for whistleblower reports. The Antitrust Division in July announced a new whistleblower rewards program focused on postal-related operations and federal procurement. The financial reward may be between 15% and 30% of a criminal fine of at least $1 million following a conviction or deferred or non-prosecution agreement.
This is a major change in enforcement posture by the Antitrust Division. First established in 1978 and revised in 1993, the Leniency Program has been a cornerstone in the division’s enforcement efforts. The Antitrust Division Leniency Program offers non-prosecution protections to the first company or individual who voluntary self-reports criminal antitrust conduct and satisfies certain conditions.
The new whistleblower program introduces the need for more strategic choices and full consideration of the costs and benefits. This program also augments existing protections under the Criminal Antitrust Anti-Retaliation Act of 2020, which prohibits employer retaliation against employees who report suspected antitrust violations. While CAARA provides important legal protections, it doesn’t offer any monetary incentives.
Companies should update their compliance program consistent with recent updates, and include an overview of both the new rewards program and the existing leniency program, clarifying the differences in eligibility and incentive structures.
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