Nuisance fee

A nuisance fee is a fee, fine, or penalty which is charged to deter an action, rather than to compensate for the costs of that action.

[1] For example, a five-dollar penalty for submitting an application late does not compensate for costs associated with processing late submissions, but rather encourages people to submit on time.

[2] This law-related article is a stub.

You can help Wikipedia by expanding it.