Guidelines for Promotional Expenses Under FCPA Affirmative Defense

In its first Opinion Procedure Release of 2007, the Department of Justice said it would take no action against a requestor proposing to cover some expenses for a U.S. trip by six officials of an Asian government. The DOJ based its opinion on the requestor’s representations, consistent with the FCPA’s promotional expenses affirmative defense, that the expenses contemplated are reasonable under the circumstances and directly relate to “the promotion, demonstration, or explanation of [the requestor’s] products or services.” 15 U.S.C. §§ 78dd-1(c)(2)(A) and 78dd-2(c)(2)(A). The requestor’s representations set out in the Release reflect the now familiar guidelines for the promotional expenses affirmative defense as developed in prior Opinion Procedure Releases.

View Opinion Procedure Release No.: 07-01 here.