Regulatory capture is a phrase used to describe when a government agency charged with placing limits on businesses becomes influenced or directed by some of the very businesses it is tasked with restraining. As a result, the businesses that do the capturing can obtain increased profits through the government bureaucracy taking actions such as providing them with favorable treatment and imposing barriers to competitors.
Tag: regulatory capture
Last month the executive director of the National Organization for the Reform of Marijuana Laws (NORML), who many people would expect to support the United States government butting out of marijuana matters, was urging the US government to tightly regulate the marijuana market. On Wednesday, two major marijuana industry associations joined in, urging the US government to impose regulations on marijuana businesses.