Leniency Policy

This policy has been rescinded. For the current policy, see the Leniency Program page on
the Department of Justice website.
CORPORATE LENIENCY POLICY

The Division has a policy of according leniency to

corporations reporting their illegal antitrust activity at an

early stage, if they meet certain conditions. "Leniency" means

not charging such a firm criminally for the activity being

reported. (The policy also is known as the corporate amnesty or

corporate immunity policy.)

A.Leniency Before an Investigation Has Begun
Leniency will be granted to a corporation reporting illegal
activity before an investigation has begun, if the following six

conditions are met:

1. At the time the corporation comes forward to report the
illegal activity, the Division has not received information

about the illegal activity being reported from any other

source;

2. The corporation, upon its discovery of the illegal
activity being reported, took prompt and effective action to

terminate its part in the activity;

3. The corporation reports the wrongdoing with candor and

completeness and provides full, continuing and complete

cooperation to the Division throughout the investigation;

4. The confession of wrongdoing is truly a corporate act, as

opposed to isolated confessions of individual executives or

officials;

5. Where possible, the corporation makes restitution to

injured parties; and

6. The corporation did not coerce another party to

participate in the illegal activity and clearly was not the

leader in, or originator of, the activity.

B. Alternative Requirements for Leniency

If a corporation comes forward to report illegal antitrust

activity and does not meet all six of the conditions set out in

Part A, above, the corporation, whether it comes forward before

or after an investigation has begun, will be granted leniency if

the following seven conditions are met:

1. The corporation is the first one to come forward and

qualify for leniency with respect to the illegal activity

being reported;

2. The Division, at the time the corporation comes in, does

not yet have evidence against the company that is likely to

result in a sustainable conviction;

2

3. The corporation, upon its discovery of the illegal

activity being reported, took prompt and effective action to

terminate its part in the activity;

4. The corporation reports the wrongdoing with candor and

completeness and provides full, continuing and complete

cooperation that advances the Division in its investigation;

5. The confession of wrongdoing is truly a corporate act, as

opposed to isolated confessions of individual executives or

officials;

6. Where possible, the corporation makes restitution to

injured parties; and

7. The Division determines that granting leniency would not

be unfair to others, considering the nature of the illegal

activity, the confessing corporation's role in it, and when

the corporation comes forward.

In applying condition 7, the primary considerations will be

how early the corporation comes forward and whether the

corporation coerced another party to participate in the illegal

activity or clearly was the leader in, or originator of, the

activity.
The burden of satisfying condition 7 will be low if

the corporation comes forward before the Division has begun an

investigation into the illegal activity. That burden will

increase the closer the Division comes to having evidence that is

likely to result in a sustainable conviction.

3

C. Leniency for Corporate Directors, Officers, and Employees

If a corporation qualifies for leniency under Part A, above,

all directors, officers, and employees of the corporation who

admit their involvement in the illegal antitrust activity as part

of the corporate confession will receive leniency, in the form of

not being charged criminally for the illegal activity, if they

admit their wrongdoing with candor and completeness and continue

to assist the Division throughout the investigation.

If a corporation does not qualify for leniency under Part A,

above, the directors, officers, and employees who come forward

with the corporation will be considered for immunity from

criminal prosecution on the same basis as if they had approached

the Division individually.

D. Leniency Procedure

If the staff that receives the request for leniency believes

the corporation qualifies for and should be accorded leniency, it

should forward a favorable recommendation to the Office of

Operations, setting forth the reasons why leniency should be

granted. Staff should not delay making such a recommendation

until a fact memo recommending prosecution of others is prepared.

The Director of Operations will review the request and forward it

to the Assistant Attorney General for final decision. If the

staff recommends against leniency, corporate counsel may wish to

seek an appointment with the Director of Operations to make their

4

views known. Counsel are not entitled to such a meeting as a

matter of right, but the opportunity will generally be afforded.

Issued August 10, 1993

5