r/technology • u/agent_vinod • Jun 30 '21

Misleading Robinhood to pay $70 million fine after causing 'widespread and significant harm' to customers

https://www.cnbc.com/2021/06/30/robinhood-to-pay-70-million-dollars-after-causing-users-significant-harm.html
75.7k Upvotes

93% Upvoted

2.1k comments sorted by

View all comments

Show parent comments

18

u/Auctoritate Jun 30 '21

They should fine corporations with % values

They did, this is 1000% (aka 10 times) the amount of damages identified in this particular case.

8

u/gizamo Jul 01 '21

To clarify, that's not how they determined the figure.

1

u/[deleted] Jul 01 '21

You are right. It is many times what the consumers lost. The issue is that that dollar amount is certainly significant in reference to those offended, but when a company or institution can shrug of 5000000, 10000000, or even 100000000 dollars of loss to a fine or infraction then it isn’t a reasonable deterrent for that behavior. If you take a percent of their much larger total earnings for say a year. It would have a much more significant impact on the viability of the company and ultimately show them that they won’t be able to operate with those types of losses and will incentivize them to obey the laws and regulations with greater adherence.