Indeed, kickbacks are illegal payments in exchange for some type of preferential treatment or improper service. They're considered a form of bribery, and both the payer and the receiver can be criminally charged.

Is it illegal to receive kickbacks?

A kickback is an illegal payment intended as compensation for preferential treatment or any other type of improper services received. ... Paying or receiving kickbacks is a corrupt practice that interferes with an employee's or a public official's ability to make unbiased decisions.

When did kickbacks become illegal?

Kickbacks that are exchanged between contractors who are working on a federal contract are prosecuted under the Anti-Kickback Enforcement Act of 1986. Kickbacks exchanged between employees or foreign government officials will be prosecuted under the Foreign Corrupt Practices Act of 1977.