Corporate Capture of Regulatory Agencies

Extracted Attributes

• Synonyms

  Regulatory capture, agency capture

• Mechanism

  Private industry uses political influence, corporate lobbyists in government positions, a 'revolving door' between industry and government, industries possessing data and expertise needed by agencies, and cultivation of allies in Congress.

• Definition

  A phenomenon where a regulatory agency, intended to act in the public interest, becomes dominated or unduly influenced by the commercial, ideological, or political interests of the special interest groups or industries it is meant to regulate, prioritizing these over the general public interest.

• Consequences

  Policies that benefit corporations, often harming the environment, low-income people, and communities of color; suboptimal policy outcomes; erosion of public confidence; and a net loss for society.

• Related Concepts

  Client politics, rent-seeking, political failure

Regulatory capture

In politics, regulatory capture (also called agency capture) is a form of corruption of authority that occurs when a political entity, policymaker, or regulator is co-opted to serve the commercial, ideological, or political interests of a minor constituency, such as a particular geographic area, industry, profession, or ideological group. When regulatory capture occurs, a special interest is prioritized over the general interests of the public, leading to a net loss for society. The theory of client politics is related to that of rent-seeking and political failure; client politics "occurs when most or all of the benefits of a program go to some single, reasonably small interest (e.g., industry, profession, or locality) but most or all of the costs will be borne by a large number of people (for example, all taxpayers)".

Web Search Results

• Corporate Capture - Center for Constitutional Rights

  “Corporate capture” is a phenomenon where private industry uses its political influence to take control of the decision-making apparatus of the state, such as regulatory agencies, law enforcement entities, and legislatures. When corporations draft legislation privately with lawmakers that they have significant influence over, this results in laws and policies that benefit corporations, while often harming the environment, low-income people, and communities of color.

• Regulatory Capture - CFA Institute Research and Policy Center

  The concept of Regulatory Capture (Reg Capture) typically refers to a phenomenon that occurs when a regulatory agency that is created to act in the public interest, instead advances the commercial or political concerns of special interest groups that dominate an industry or sector the agency is charged with regulating. When regulatory capture occurs, the interests of firms or political groups are given priority or favor over the interests of the public.

• Chapter 39: Revolving Doors and Corporate Capture of ...

  The second related issue with respect to the federal agency’s ability to fully serve the public interest is the phenomenon known as regulatory capture, which happens when wealthy corporations, industrial sectors, and financial interests are able to use their close relationships with executive agencies to get them to work for their interests rather than those of ordinary Americans.Obviously, one primary way of doing this is to get corporate lobbyists in government positions, because they will [...] The United States Department of Agriculture (USDA). The USDA has long been an exemplar of regulatory capture. For example, the USDA’s National Organic Standard Board (NOSB) is responsible for regulating organic farming—particularly which foods get to be labeled as organic or not. Consumer and environmental advocates argue that regardless of whether Republicans or Democrats are in charge of the White House, appointments to the NSOB are “stacked” with “members from, or friendly to, corporate [...] bring with them a pro-corporate ethos and perspective. The revolving door helps large economic interests in this regard. Capture is also facilitated by the fact that the industries being regulated often possess the data and the expertise that executive agencies need to do their work. Moreover, regulated industries cultivate allies in Congress who can put pressure on regulatory agencies to see the industry’s point of view on a particular regulatory issue.

• Regulatory Capture Definition With Examples

  Regulatory capture is a process by which regulatory agencies become dominated by the interests of those they were originally charged to regulate. In this state, the regulatory agency may directly or indirectly work to serve the interests of private firms rather than the general public. Sponsored Trade around the clock

• Real Cases of Regulatory Capture in Public Policy

  Regulatory capture is a phenomenon in which regulatory agencies, established to act in the public interest, become dominated or unduly influenced by the industries they are meant to regulate. The result is a policy environment where decisions favor industry stakeholders over public welfare, distorting the intended regulatory balance. As public policy becomes increasingly complex in an interconnected global economy, understanding the real-life cases of regulatory capture is crucial to evaluate [...] Understanding Regulatory Capture Definition and Concept Regulatory capture occurs when a regulatory agency, instead of acting as an impartial body, aligns its actions with the interests of the industry it oversees. This phenomenon undermines regulatory intent, eroding public confidence and potentially leading to suboptimal policy outcomes. Essentially, the cycle of capture can be represented by the following process: [...] Conclusion Regulatory capture remains one of the most pressing challenges in contemporary governance. The real cases presented—from the financial sector and environmental regulation to healthcare and technology—demonstrate the pervasive nature of industry influence and its consequences for public policy. When regulatory agencies lose their independence, policies may lean in favor of industry interests, ultimately undermining the public welfare.