---
kind: "section"
citation: "16 C.F.R. § 1020.5"
title: "16"
number: "1020.5"
heading: "What is the Small Business Enforcement Policy?"
url: "https://uscodex.org/cfr/16/1020.5"
---

# §1020.5. What is the Small Business Enforcement Policy?

- (a) When appropriate, the Commission will, subject to all applicable statutes and regulations and [paragraph (b)](#b) of this section:
  - (1) Waive or reduce civil penalties for violations of a statutory or regulatory requirement by a small business and/or
  - (2) Consider a small business's ability to pay in determining a penalty assessment against that small business,
- (b) The Commission may decline to waive civil penalties or consider a small business's ability to pay, under [paragraph (a)](#a) of this section, when one or more of the following circumstances applies:
  - (1) **The small business's violations posed serious health or safety threats.**
  - (2) **The small business was subject to multiple enforcement actions by the Commission.**
  - (3) **The small business's violations involved willful or criminal conduct.**
  - (4) **The small business failed to correct violations within a reasonable time.**
  - (5) **The small business failed to make a good faith effort to comply with the law.**
  - (6) The small business acted in any other way that would make it unfair or inappropriate for the Commission to provide a benefit under [paragraph (a)](#a) of this section.

## Notes

### Authority

Authority: 5 U.S.C. 601 note.

### Source

Source: 61 FR 52878, Oct. 9, 1996, unless otherwise noted.