Penalty Points is a point-based system feature designed to help users highlight key areas for account improvement. Collanity will give Penalty Points along with the consequences if a violation is committed. This violation can be obtained through Collanity's observations or confirmed reports from other users.
The form of violation will affect what kind of suspension the user will receive. For violations that result in suspension, the duration of the suspension will be determined by how many Penalty Points the user has.
These Penalty Points can also affect your experience at Collanity in 2 ways. First, the number of Penalty Points can affect the process of getting approval for certain listings (e.g. Community). Second, in suspended status, the user's account will temporarily lose the account badge that has been earned.
To avoid the Penalty Points penalty, study the calculation and periodically review your account's Penalty Points on the Account Quality page in My Dashboard.