United States v. DISH Network L.L.C. ( 2020 )


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  •                                 In the
    United States Court of Appeals
    For the Seventh Circuit
    ____________________
    No. 17-3111
    UNITED STATES OF AMERICA, et al.,
    Plaintiffs-Appellees,
    v.
    DISH NETWORK L.L.C.,
    Defendant-Appellant.
    ____________________
    Appeal from the United States District Court
    for the Central District of Illinois.
    No. 09-3073 — Sue E. Myerscough, Judge.
    ____________________
    ARGUED SEPTEMBER 17, 2018 — DECIDED MARCH 26, 2020
    ____________________
    Before EASTERBROOK, KANNE, and BRENNAN, Circuit Judg-
    es.
    EASTERBROOK, Circuit Judge. After a bench trial that lasted
    five weeks and produced 475 typed pages of findings, a dis-
    trict judge concluded that DISH Network and its agents
    commi]ed more than 65 million violations of telemarketing
    statutes and regulations. 
    256 F. Supp. 3d 810
     (C.D. Ill. 2017)
    (183 printed pages). The penalty: $280 million. DISH does
    2                                                  No. 17-3111
    not challenge any finding of fact. This simplifies the appel-
    late task, but legal issues remain.
    DISH sold its satellite TV service through its own staff
    plus third parties. These fell into three categories. DISH
    hired “telemarketing vendors” to conduct campaigns on its
    behalf. It used thousands of “full service retailers” that sold,
    installed, and serviced satellite gear and service in their are-
    as. Finally, it had some 50 “order-entry retailers”, which
    used phones to sell nationwide. The order-entry retailers
    took orders from customers and entered them directly into
    DISH’s computer system. DISH was responsible for in-
    stalling the necessary equipment and received payments
    from the customers, remi]ing to the order-entry retailers a
    commission for each new customer. This appeal concerns
    the acts of DISH and four order-entry retailers: Dish TV
    Now, Star Satellite, JSR, and Satellite Systems Network.
    The United States, California, North Carolina, Illinois,
    and Ohio filed suit against DISH, alleging violations of fed-
    eral and state laws. The district court found that DISH and
    its agents violated the Telemarketing Sales Rule, 
    16 C.F.R. §310
     (propagated under 
    15 U.S.C. §45
    , part of the Federal
    Trade Commission Act), the Telephone Consumer Protection
    Act, 
    47 U.S.C. §227
    , and related state laws. The appeal con-
    cerns the extent to which DISH had to coordinate do-not-call
    lists with and among these retailers or was otherwise re-
    sponsible for their acts. The Telemarketing Sales Rule pro-
    hibits (i) calls to people who placed their names on the Na-
    tional Do Not Call Registry, (ii) calls to people who placed
    their names on a vendor’s internal do-not-call list, and (iii)
    “abandoned” calls (so named because a system that fails to
    put the consumer in contact with a live person within two
    No. 17-3111                                                    3
    seconds of the call connecting is deemed “abandoned”). See
    
    16 C.F.R. §310.4
    (b)(1)(iii)(B), (A), and (b)(1)(iv). Those prohi-
    bitions give rise to most of the issues.
    The district judge found that DISH caused violations of
    the Rule by engaging other entities to sell its service. As a
    fallback, the judge concluded that the order-entry retailers
    were DISH’s agents, which made DISH responsible whenev-
    er any of these retailers called a person on any other retail-
    er’s do-not-call list (or on DISH’s own). The district judge
    added that DISH was liable for having provided substantial
    assistance to one order-entry retailer, Star Satellite, in mak-
    ing abandoned calls. The judge found that DISH itself placed
    calls that violated the Rule. In addition, the district court
    deemed DISH liable for the order-entry retailers’ violations
    of the state statutes. The Telephone Consumer Protection
    Act, §227(b)(1)(B), (c), and some state laws, which the district
    court’s opinion collects, prohibit many prerecorded calls and
    calls to persons on the FTC’s do-not-call registry.
    We start with DISH’s challenge to the district court’s con-
    clusion that it caused violations of statutes and regulations
    just by hiring others to sell its services. One provision in the
    Rule makes it unlawful for a seller to “cause a telemarketer
    to engage in” violations. 
    16 C.F.R. §310.4
    (b). Neither the reg-
    ulation nor any judicial decision addresses what “cause”
    means. Plaintiffs maintain, and the district court found, that
    “cause” occurs whenever an act plays any role in the chain of
    acts leading to a violation. On this understanding the very
    existence of DISH “causes” all violations by anyone who, in
    the absence of satellite TV, would be in some other line of
    work. DISH maintains, to the contrary, that “cause” means
    “proximate cause,” a phrase that excludes some effects that
    4                                                    No. 17-3111
    are remote from the violation. See Hemi Group, LLC v. New
    York City, 
    559 U.S. 1
     (2010) (applying a proximate-cause ap-
    proach to civil RICO).
    We are skeptical about both approaches. To engage a
    contractor is to cause calls, but not necessarily violations, and
    it is violations that the Rule prohibits a seller from causing. It
    may be that some retailers will make forbidden calls, but
    others will exceed the speed limit when driving, violate the
    minimum wage laws, or steal customers’ funds. Would it
    make sense to say that DISH caused those offenses just by
    trying to sell TV service? The central question should be
    “cause what?” rather than “cause” in the abstract. This is a
    distinction that has been tackled for other bodies of law. For
    example, recovering damages for a violation of the securities
    law depends on establishing that the fraud caused a loss, not
    just caused the transaction in which a loss occurred. See, e.g.,
    Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc.,
    
    552 U.S. 148
     (2008); Dura Pharmaceuticals, Inc. v. Broudo, 
    544 U.S. 336
     (2005). The plaintiffs do not argue, and the district
    judge did not find, that DISH “caused” all violations in this
    sense, as opposed to causing efforts to sell its services.
    We need not come to a conclusion about the meaning of
    “cause”, however, because the district court also found that
    the order-entry retailers were DISH’s agents, making DISH
    liable for their acts as a ma]er of state agency law. Liability
    in favor of the state plaintiffs depends on the agency finding:
    the state statutes and rules do not have a clause parallel to 
    16 C.F.R. §310.4
    (b), so we cannot avoid deciding whether the
    order-entry retailers were DISH’s agents. If we agree with
    the district judge that they were, that resolves most issues of
    liability under both state and federal law. The debate about
    No. 17-3111                                                   5
    “cause” would be dispositive only if we were to reject the
    district judge’s agency ruling.
    And DISH’s decision not to contest any of the district
    judge’s findings of fact greatly simplifies this analysis, be-
    cause the existence of an agency relation is a question of fact.
    As with many factual issues the outcome depends on the
    application of legal rules to facts—in legal jargon agency is a
    “mixed question of law and fact”—but that does not open
    the subject to the sort of plenary review available to ques-
    tions of law. See, e.g., Pullman-Standard v. Swint, 
    456 U.S. 273
    (1982) (the existence of “discrimination” is a question of fact
    even though the decision depends on legal rules).
    We have held that existence of an agency relation is a
    question of fact reviewed for clear error. See SpiH v. Proven
    Winners North America, LLC, 
    759 F.3d 724
    , 732 (7th Cir. 2014);
    Moriarty v. Glueckert Funeral Home, Ltd., 
    155 F.3d 859
    , 864 (7th
    Cir. 1998). These decisions accord with the Supreme Court’s
    view, most recently expressed in U.S. Bank, N.A. v. Village at
    Lakeridge, LLC, 
    138 S. Ct. 960
    , 967–68 (2018), that deferential
    rather than “legal” appellate review is appropriate when
    case-specific factual considerations dominate. See also
    Monasky v. Taglieri, 
    140 S. Ct. 719
    , 730 (2020).
    DISH maintains that the district court legally erred when
    it interpreted the contract between the order-entry retailers
    and DISH. Interpretation presents a legal question in the ab-
    sence of extrinsic evidence, of which there is none, but this
    does not assist DISH because the district judge got it right.
    The contract asserts that it does not create an agency rela-
    tion, but parties cannot by ukase negate agency if the rela-
    tion the contract creates is substantively one of agency. Re-
    statement (Third) of Agency §1.02 (2006).
    6                                                   No. 17-3111
    This contract (materially identical for all order-entry re-
    tailers) gave DISH the right to control their performance.
    Section 7.3 requires that “Retailer shall comply with all
    Business Rules”. Section 1.6 provides a definition: “‘Business
    Rule[]’ means any term, requirement, condition, condition
    precedent, process or procedure associated with a Promo-
    tional Program or otherwise identified as a Business Rule by
    [DISH] … [DISH] has the right to modify any Business Rule
    at any time and from time to time in its sole and absolute
    discretion for any reason or no reason, upon notice to Retail-
    er.” These provisions gave DISH complete control over the
    order-entry retailers’ performance. What’s more, these re-
    tailers acted directly for DISH, entering orders into DISH’s
    system; they did not have their own inventory and were not
    resellers of any kind. Under normal principles, they were
    DISH’s agents notwithstanding the contractual disclaimer.
    Next in line: is DISH liable as a principal for failing to en-
    sure that it and all of its agents shared a single internal do-
    not-call list? The relevant portion of the Telemarketing Sales
    Rule, 
    16 C.F.R. §310.4
    (b)(1)(iii)(A), forbids calling a person
    who “previously has stated that he or she does not wish to
    receive an outbound telephone call made by or on behalf of
    the seller whose goods or services are being offered”. Be-
    cause the order-entry retailers were DISH’s agents, DISH
    and the order-entry retailers were collectively one “seller
    whose goods or services are being offered”. This meant that
    they had to act collectively; otherwise any household could
    receive endless calls peddling DISH’s service, as long as each
    came from a different order-entry retailer. (The calls from
    the order-entry retailers were made within the scope of their
    agency; we need not consider whether coordination is re-
    No. 17-3111                                                     7
    quired when someone who is not acting as a traditional
    agent places a call.)
    The same analysis applies to the Ohio statute. It makes li-
    able any party who either directly or as a result of a third
    party acting on its behalf engaged in unfair, deceptive, and
    unconscionable consumer sales practices. Ohio Rev. Code
    §§ 1345.02(A), 1345.03(A). Calling people on internal do-not-
    call lists violates this rule, and as with the Telemarketing
    Sales Rule, the order-entry retailers were the sort of agents
    required to coordinate lists with DISH. The order-entry re-
    tailers were acting on behalf of DISH for this purpose.
    DISH contends that, if it is liable for failure to coordinate
    the do-not-call lists, this is a continuing violation whose
    penalty is capped by 
    15 U.S.C. §45
    (m)(1)(C): “In the case of a
    violation through continuing failure to comply with a rule or
    with [subsection (a)(1)], each day of continuance of such
    failure shall be treated as a separate violation”. The district
    court disagreed with this contention and treated each call,
    rather than each day, as a violation. The Supreme Court has
    not yet examined this provision, nor has any court of ap-
    peals in a published opinion. The Court has held that a simi-
    lar provision, §45(l), allows the government to seek a daily
    penalty for a continuing violation of a consent order to not
    acquire other bakeries (the defendant acquired a bakery and
    retained it). United States v. ITT Continental Baking Co., 
    420 U.S. 223
     (1975). That conclusion offers limited aid for our
    situation, as it’s not clear whether a failure to coordinate lists
    is at all like a failure to divest a bakery.
    Let us return to the text of the Rule. It prohibits sellers
    from “causing” a telemarketer to initiate “any outbound tel-
    ephone call to a person” who “previously has stated that he
    8                                                   No. 17-3111
    or she does not wish to receive an outbound telephone call
    made by or on behalf of the seller whose goods or services
    are being offered”. 
    16 C.F.R. §310.4
    (b)(1)(iii)(A). This tells us
    that the violation is the call, not the failure to coordinate in-
    ternal do-not-call lists. Lack of coordination may lead to for-
    bidden calls, but the absence of coordination is not itself a
    legal wrong. As long as sellers do not call people who have
    asked not to be called, they have satisfied their legal obliga-
    tion. This implies that “such failure” in §45(m)(1)(C) refers to
    each call. A call that lasted multiple days would count as one
    violation per day; otherwise there is one violation per call.
    Cf. National Railroad Passenger Corp. v. Morgan, 
    536 U.S. 101
    (2002) (distinguishing between discrete violations of Title VII
    of the Civil Rights Act and continuous “hostile work envi-
    ronment” violations). No one has sought enhanced penalties
    for multi-day calls, and because the call is the violation
    §45(m)(1)(C) does not cut down liability to one penalty per
    day.
    Some of the order-entry retailers’ calls were wrongful in-
    dependent of the list-coordination issue. These include calls
    to people on the National Do Not Call Registry, calls to peo-
    ple on the order-entry retailers’ own internal lists, and aban-
    doned calls, as well as some calls that violated state though
    not federal rules. The norm of agency is that a principal is
    liable for the wrongful acts of the agent taken within the
    scope of the agency—that is, the authority to complete the
    task assigned by the principal. See Restatement (Third) of
    Agency §7.08. A principal that learns of illegal behavior
    commi]ed by its agents, chooses to do nothing, and contin-
    ues to receive the gains, is liable for the agent’s acts. See
    NECA-IBEW Rockford Local Union 364 Health & Welfare Fund
    v. A & A Drug Co., 
    736 F.3d 1054
    , 1059 (7th Cir. 2013).
    No. 17-3111                                                    9
    The order-entry retailers were authorized to sell DISH’s
    service by phone nationwide. In exercising that authority the
    order-entry retailers violated the prohibitions mentioned in
    the preceding paragraph, and the district court found that
    DISH knew about these retailers’ wrongful acts (a factual
    finding not challenged on appeal). This is enough to make
    DISH liable as the principal.
    Its primary argument against liability is that the contracts
    told the order-entry retailers to follow all applicable laws.
    DISH points to Bridgeview Health Care Center, Ltd. v. Clark,
    
    816 F.3d 935
     (7th Cir. 2016), as support for its position that
    such an instruction averts liability. In Bridgeview a small
    business explicitly told a marketing firm to send unsolicited
    fax ads to about 100 entities around Terre Haute. The firm
    sent, in addition to the local faxes, more than 4,500 faxes to
    businesses around Indiana and surrounding states without
    the small business’s knowledge or permission. We held that
    the small business was liable for the 100 authorized faxes but
    not for the unauthorized ones.
    Bridgeview does not stand for the proposition that generic
    instructions to follow the law immunize a principal from li-
    ability resulting from its agent’s illegal acts, taken within the
    scope of authority. Instead it shows that acts outside of an
    agent’s authority do not generate liability for the principal.
    The faxes were not unauthorized because they were illegal
    (the authorized faxes were also illegal). They were unauthor-
    ized because the principal did not give the agent authority to
    send them and lacked any knowledge of the agent’s unau-
    thorized actions. We added that the extra faxes did not ben-
    efit the small business, which did not sell its products out-
    10                                                 No. 17-3111
    side of Terre Haute. Principals are not liable for acts that
    gratify an agent’s desires at the principals’ expense.
    DISH’s agents, by contrast, acted within their authority
    to sell TV service using phone calls, and those acts benefi]ed
    DISH. The district court found that DISH knew what the or-
    der-entry retailers were doing. That is enough for DISH to be
    liable for the order-entry retailers’ illegal calls under those
    federal and state laws that extend beyond the failure to co-
    ordinate internal do-not-call lists.
    We have one remaining question of liability. The district
    court found DISH liable under §310.3(b) of the Telemarket-
    ing Sales Rule for “substantially assisting” Star Satellite in
    making abandoned calls. This effectively means that the dis-
    trict court held DISH liable twice per abandoned call: once
    for making the call (through an agent) and once for assisting
    that agent. Then the district court declined to count the calls
    twice in calculating the penalty, so it is not clear why DISH
    bothers to protest.
    To the extent that the “substantial assistance” finding
    affected the district court’s exercise of discretion in selecting
    the penalty, however, the finding may ma]er—and it was
    mistaken. Section 310.3(b) says: “It is a deceptive telemarket-
    ing act or practice and a violation of this Rule for a person to
    provide substantial assistance or support to any seller or tel-
    emarketer when that person knows or consciously avoids
    knowing that the seller or telemarketer is engaged in any act
    or practice that violates [other provisions of the Rule].”
    While DISH is a “person” as defined in §310.2 of the Rule,
    context shows that the sort of “person” to which this prohi-
    bition applies is one that assists a “seller” or “telemarketer.”
    Yet DISH is the seller for this purpose; as the principal to the
    No. 17-3111                                                     11
    order-entry retailers, it is treated as the seller for all of their
    calls.
    Section 310.3 does not create liability for assisting oneself.
    Such liability is possible in theory: Employee A could assist
    Employee B of the same entity to make a wrongful call.
    Longstanding principles require treating the employer and
    its employees as one entity, however. Copperweld Corp. v. In-
    dependence Tube Corp., 
    467 U.S. 752
     (1984). When an entity is
    vicariously responsible for another’s acts (as a corporation is
    vicariously for the acts of its employees, and DISH is vicari-
    ously responsible for the acts of the order-entry retailers), it
    makes li]le sense to treat the entity as assisting itself. It
    would take clearer language than §310.3(b) to support such a
    conclusion. The district court therefore should not have held
    DISH liable for “substantially assisting” its own agents.
    We move to DISH’s statutory defenses. Liability is possi-
    ble under 
    15 U.S.C. §45
    (m)(1)(A) only if a violator of regula-
    tions promulgated under the Federal Trade Commission Act
    (such as the Telemarketing Sales Rule) has either “actual
    knowledge or knowledge fairly implied on the basis of ob-
    jective circumstances that such act is unfair or deceptive and
    is prohibited by such rule.” DISH contends that it cannot be
    liable under this standard for three reasons. First, it did not
    know of each individual call placed by the order-entry re-
    tailers (a mistake of fact). Second, it did not know that it
    would be liable for the actions of the order-entry retailers
    (another mistake of fact, given our holding that agency is a
    factual ma]er). Third, it did not know that it lacked an “es-
    tablished business relationship” with customers who had
    stopped paying their bills before DISH disconnected their
    service (a mistake of law).
    12                                                 No. 17-3111
    The mistake-of-fact defense is weak. The knowledge of
    the agent is imputed to the principal. As the district court
    found, the order-entry retailers knew that they were making
    millions of calls, and they were making those calls to gain
    customers for DISH. Therefore, DISH knew of the calls as
    well. Restatement (Third) of Agency §5.03; National Production
    Workers Union Insurance Trust v. Cigna Corp., 
    665 F.3d 897
    ,
    903 (7th Cir. 2011). And DISH’s failure to understand this
    rule of agency law—that is, its mistaken belief that a dis-
    claimer in the contract could avoid liability—does not pro-
    vide a defense under this statutory language.
    Can a party avoid liability under the Federal Trade Com-
    mission Act for a mistake of law? Traditionally, ignorance of
    the law is no excuse. But §45(m)(1)(A) includes a variation on
    an ignorance-of-the-law defense; a business can be liable on-
    ly if it either knew that the act was unlawful or if it should
    have known the act was unlawful (“knowledge fairly im-
    plied”). See Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich
    L.P.A., 
    559 U.S. 573
    , 583–84 (2010). See also United States v.
    National Financial Services, Inc., 
    98 F.3d 131
    , 139 (4th Cir.
    1996).
    But the state of DISH’s knowledge is yet another factual
    question, and DISH has not challenged any finding of fact.
    The district court found that DISH had at least implied
    knowledge that the order-entry retailers were its agents and
    therefore would be liable for their actions. The district court
    concluded that DISH knew that it had control over the or-
    der-entry retailers and knew, too, that they were making un-
    lawful calls. That was enough for DISH to be aware that it
    could be liable. A large national corporation with the ability
    No. 17-3111                                                           13
    to hire sophisticated counsel is deemed to know basic prin-
    ciples of agency law.
    Still, DISH argues, it did not know the legal definition of
    an “established business relationship” under 
    16 C.F.R. §310.2
    (q)(1). A business can call a customer with whom it
    has an “established business relationship” without regard to
    the National Do Not Call Registry or its internal do-not-call
    lists. 
    16 C.F.R. §310.4
    . An “established business relationship”
    depends on “the consumer’s purchase, rental, or lease of the
    seller’s goods or services or a financial transaction between
    the consumer and seller, within the eighteen (18) months
    immediately preceding the date of a telemarketing call”. 
    16 C.F.R. §310.2
    (q)(1). DISH asserts that the regulation treats a
    business relation as “established” through the last date a
    product was delivered. DISH points to this comment, which
    accompanied the Rule:
    The amended [Telemarketing Sales] Rule allows for an 18-month
    time limit where there has been a purchase, rental or lease, or
    other financial transaction between the customer and seller. The
    18-month time limit for an “established business relationship”
    based on a purchase, lease, rental, or financial transaction runs
    from the date of the last payment or transaction, not from the
    first payment. In instances where consumers pay in advance for
    future services (e.g., purchase a two-year magazine subscription
    or health club membership), the seller may claim the exemption
    for 18 months from the last payment or shipment of the product.
    
    68 Fed. Reg. 4361
    , 4593 (Jan. 29, 2003). DISH contends that
    this entitled it to start the 18-month period on the date it dis-
    connected a customer’s service, even if that date came after
    the customer’s subscription expired for lack of payment. The
    district court, by contrast, used the customer’s final payment
    as the start of the 18-month window.
    14                                                 No. 17-3111
    We agree with the district court: the Rule shows that
    DISH needed to use the last date of payment. The text of the
    Rule starts the 18-month clock from the date a consumer
    purchases, rents, or leases the seller’s goods or services. This
    makes 18 months from the last payment the terminal date.
    The contrary statement in the Federal Register (if it really is
    contrary) does not purport to interpret any of the Rule’s text.
    An agency’s reasonable interpretation of ambiguous regula-
    tions may be entitled to deference. Kisor v. Wilkie, 
    139 S. Ct. 2400
     (2019). But this Rule is not ambiguous. To the extent
    that the Federal Trade Commission’s comments are incon-
    sistent with the Rule’s text, the text prevails.
    Finally, we move to damages.
    DISH argues that the federal and state telemarketing
    laws violate the Due Process Clause of the Fifth Amendment
    because they fail to provide notice of potentially whopping
    penalties. This argument supposes that government must
    provide some notice on top of the statutes and rules them-
    selves, but why? There’s nothing ambiguous about them. If
    there is a problem, it isn’t lack of notice.
    DISH’s other constitutional contention is that the maxi-
    mum penalties allowed by the Telemarketing Sales Rule, the
    Telephone Consumer Protection Act, and the related state
    laws, substantively violate the Due Process Clause because
    they are too high. The maximum penalty is $10,000 per vio-
    lation. Multiply this by the 66 million violations the district
    judge found and you get $660 billion. That’s a huge number,
    but it is not possible to evaluate it separately from the penal-
    ty per violation, which is a normal number for an intentional
    wrong. Legislatures have “a wide latitude of discretion” to
    set civil penalties. St. Louis, Iron Mountain & Southern Ry. v.
    No. 17-3111                                                
    15 Williams, 251
     U.S. 63, 66 (1919). Someone whose maximum
    penalty reaches the mesosphere only because the number of
    violations reaches the stratosphere can’t complain about the
    consequences of its own extensive misconduct.
    A complaint about how the district judge exercised her
    discretion could in principle fare be]er. An award of $660
    billion for the conduct in which DISH engaged would be
    impossible to justify—though a court of appeals could say
    that without reaching any constitutional argument. (Pruden-
    tial arguments, such as a contention that a judge abused her
    discretion, come ahead of constitutional points. See, e.g.,
    New York City Transit Authority v. Beazer, 
    440 U.S. 568
    , 582
    (1979).) But the district court did not award $660 billion or
    anything close to it. The award is $280 million, closer to $4
    than to $10,000 per improper call. This could be a constitu-
    tional problem only if a combination of compensatory and
    punitive damages adding to $4 violated the Due Process
    Clause. Yet if an unwanted call causes even $1 of harm, the
    “punitive” multiplier (around 3) likely comes within the
    Constitution’s limit. See State Farm Mutual Auto Insurance Co.
    v. Campbell, 
    538 U.S. 408
    , 425 (2003) (questioning whether a
    punitive damages multiplier beyond nine can satisfy the
    Due Process Clause).
    Still, as we have mentioned, statutory questions and an
    evaluation of the judge’s use of discretion must precede any
    constitutional decision. The Federal Trade Commission Act
    requires that “[i]n determining the amount of such a civil
    penalty, the court shall take into account the degree of cul-
    pability, any history of prior such conduct, ability to pay,
    effect on ability to continue to do business, and such other
    ma]ers as justice may require.” 
    15 U.S.C. §45
    (m)(1)(C). The
    16                                                  No. 17-3111
    Telephone Consumer Protection Act does not include a pro-
    vision that a court should consider a violator’s ability to pay.
    One of the state statutes (
    Cal. Bus. & Prof. Code §17206
    ) in-
    structs courts to consider the violator’s ability to pay, but the
    others do not. Yet the district court based the penalty entire-
    ly on DISH’s ability to pay, se]ing it at 20% of a year’s
    profits. That’s a problem, especially under statutes that do
    not include ability to pay as even a permissible factor.
    Normally the legal system bases civil damages and pen-
    alties on harm done, not on the depth of the wrongdoer’s
    pocket. Legislatures can change this norm, and two of the
    statutes underlying this penalty permit consideration of
    wealth—though none permits it to be the sole factor. It is
    hard for us to see a justification, even under these two stat-
    utes, for starting from the defendant’s wealth rather than
    harm. We appreciate that the district judge tried to ensure
    that the penalty was within a constitutionally allowable
    range, but the best way to do this is to start from harm rather
    than wealth, then add an appropriate multiplier, after the
    fashion of the antitrust laws (treble damages) or admiralty
    (double damages), to reflect the fact that many violations are
    not caught and penalized. See, e.g., Exxon Shipping Co. v.
    Baker, 
    554 U.S. 471
     (2008) (admiralty); Reiter v. Sonotone Corp.,
    
    442 U.S. 330
     (1979) (antitrust); Beard v. Wexford Health Sources,
    Inc., 
    900 F.3d 951
    , 956 (7th Cir. 2018); Zazú Designs v. L’Oréal,
    S.A., 
    979 F.2d 499
    , 505–06 (7th Cir. 1992).
    The judgment of the district court is affirmed, except for
    its holding that DISH is liable for “substantially assisting”
    Star Satellite and its measure of damages. With respect to
    those ma]ers, the judgment is vacated, and the case is re-
    manded for further proceedings consistent with this opinion.