Businesses could be fined thousands of dollars for making these common mistakes when expanding into different markets.
To provide businesses with a better understanding of the potential costs of not adhering to local laws and regulations, international business experts and TollFreeForwarding.com have shared some of the most severe penalties businesses can incur when expanding overseas. These include:
Eye-watering fines
France
Breaching France’s Right to Disconnect Law, which says that French employees cannot be punished for disconnecting from their computers outside of working hours, can result in fines upwards of $65,000.
Germany
In Germany, businesses that don’t pay their employees minimum wage can be fined nearly $540,000 vs. just $10,000 in the US.
China
Unsafe work conditions and workplace accidents in China can result in fines as high as $14 million compared to the US, where unsafe working conditions can incur fines at a lower rate of $7,000.
Potential jail time
The UK
In the UK, businesses that are found guilty of knowingly employing someone who does not have the right to work in the UK could face up to five years in jail.
France
Misclassifying workers as contractors in France can incur jail time of up to three years in addition to fines of nearly $270,000.
India
India also penalizes any company that misclassifies their employees with potential jail time and fines that can reach into the millions of dollars.
Local language mishaps
Companies that have failed to localize translation include Gerber, who entered the French market unaware that “Gerber” resembles a French slang word for “to vomit.”
Coors entered the Spanish-speaking market with the slogan “Turn it loose,” which translates to the Spanish slang for “to suffer from diarrhea.”
Jason O’Brien, COO of TollFreeForwarding.com, had this to say on the penalties:
“Whether it’s a substantial fine, legal action, or even just an embarrassing translation mistake, not doing your due diligence when entering a foreign market can have some severe consequences. Having assisted countless businesses in their expansion overseas, we always recommend for businesses to perform thorough market research to avoid any potential penalties, be they monetary or reputational.”
TollFreeForwarding.com
