[co-author: Stephanie Kozol]*

Washington Attorney General (AG) Bob Ferguson announced that he has proposed legislation — H.B. 2072/S.B. 5994 — to enhance the state’s maximum penalty for antitrust violations like price fixing and collusion.

The State of Washington’s current maximum penalty for antitrust conduct is $900,000 for corporations — lower than the maximum penalties afforded by other states such as Texas, California, Florida, Vermont, Illinois, and New York. For instance, Texas’ antitrust penalties can reach up to $30 million, and California violators are subject to penalties worth up to twice the amount of the illegal profit, including potential fines for competitor’s losses resulting from the antitrust conduct.

With these considerations in mind, Ferguson — along with Senator Yasmin Trudeau and Representative Darya Farivar — introduced HB 2072, which would increase the maximum penalty for price fixing, illegal collusion, and other antitrust violations to up to three times the amount of the illegal gains or loss avoided.

Takeaway

Washington’s potential increase in penalties for antitrust activity is a reminder to companies that state AGs may seek high penalties for alleged anticompetitive conduct.

*Senior Government Relations Manager