Say companies A and B each cause $500 in damages. Company A makes $600 from that act, while Company B makes $6,000. A fine of $5,000 is way over the top for Company A, but Company B can just write it off as the cost of doing business.
As I've said elsewhere, I'm not advocating one particular method of coming up with this number. I'm just saying that the fine should depend on the company, not be a flat number based on damages caused.
If the cost of damages (including a punitive 2x or whatever) is really and truly $500, and Company B is willing to make their victims whole at that cost...I'm 100% sure there's a problem that needs solving.
As I've said elsewhere, I'm not advocating one particular method of coming up with this number. I'm just saying that the fine should depend on the company, not be a flat number based on damages caused.