(Bloomberg) -- The Justice Department said Monday it's tightening rules for self-reporting misconduct like price fixing.
Firms must report any potential violations of criminal antitrust laws “promptly,” or they will still be subject to prosecution, the Justice Department announced Monday in the first update to leniency rules in more than five years.
“Corporate boards and executives, and the counsel advising them, should understand that sitting on their hands after detecting an antitrust crime will have real ramifications -- losing out on leniency means severe consequences,” said Assistant Attorney General Jonathan Kanter, who leads the antitrust division, in a statement.
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The leniency program allows companies to win immunity from charges if they are the first to alert the government to price-fixing conduct and agree to cooperate and provide evidence of wrongdoing by their competitors. The program has led to prosecutions involving vitamins, auto parts, art auctions and market manipulation by some of the world's biggest banks, among others.
“Prompt” reporting means alerting the Justice Department at the first indication of wrongdoing, or after determining a potential violation following an internal investigation, according to an explanation of the changes issued by the division. If a company doesn't report misconduct after a finding from an internal probe, it won't be eligible for the program, Kanter said.
Firms like Tyson Foods Inc. have participated in the Justice Department leniency program after it reported price-fixing in the chicken industry. Natural gas company Chesapeake Energy Corp. was granted leniency for cooperating with authorities while its CEO was indicted for rigging oil and natural gas lease bids.
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