This is an important point, I think. If our ultimate goal is to incentivise good practice, we have to deal with a range of problems from simple ignorance of goo

This is an important point, I think. If our ultimate goal is to incentivise good practice, we have to deal with a range of problems from simple ignorance of good practice or what the law requires through to gross negligence or "wilful ignorance" situations. If you have a business that is acting in good faith but makes an error in judgement or isn't aware of some specific regulation, there is no sense taking a punitive stance. Obviously if their actions have caused damage to another party then compensation may be appropriate, but otherwise constructive engagement is likely to work best. On the other hand, if you have a business that is knowingly and deliberately acting in bad faith, there may be little point in being constructive, and the penalties need to be significant enough to force them to change (or their business to fail).