Fines and penalties serve several critical purposes: 1. Deterrence: By imposing significant financial consequences, businesses are discouraged from engaging in illegal or unethical activities. 2. Compliance: These sanctions ensure that businesses adhere to legal standards, protecting consumers and maintaining market integrity. 3. Punishment: Penalties serve as a punitive measure for those who have committed violations, ensuring justice is served. 4. Reparation: In some cases, fines can be used to compensate victims or address damages caused by the violation.