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ralph lauren agrees to pay in bribery case



Ralph Lauren Corp. Fined for Bribery

Ralph Lauren Corp. has given up profits of $700,000 and paid a penalty of $882,000 after discovering a manager within the company was bribing Argentinian customs officials to get Lauren’s products into the country without inspection. New York based Ralph Lauren called in the U.S. Justice Department and Securities and Exchanges Commission itself when the underhand practices were discovered in 2010; an internal investigation conducted by Ralph Lauren officials uncovered evidence bribes had been paid by its Argentinian manager to customs officials from 2005 to 2009 totaling around $593,000 in payments and gifts.

By informing the necessary U.S. Government officials and immediately ceasing operations in Argentina Ralph Lauren has avoided any further charges being brought against the company. In order to remain free from prosecution Lauren’s staff must be trained in the U.S. Foreign Corrupt Practices Act and complete a worldwide risk assessment. If the company continues to abide by the rules of the U.S. Foreign Corrupt Practices Act no further action will be taken because of the prompt response of the company’s officials to the bribery scandal. Ralph Lauren Corp. claims the company informed the necessary officials of the details of the bribery scandal less than two weeks after it was discovered.

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