1. to impose a penalty or punishment on someone for breaking a rule or law
2. to put someone at a disadvantage

Examples

• The referee will penalize players who commit fouls.
• The company was penalized for violating environmental regulations.
• Students are penalized for late submissions with reduced grades.
• The new tax law penalizes small businesses.
• Don’t penalize him for being honest about his mistake.
• The scoring system penalizes incorrect answers.
• They were penalized five yards for the false start.