Regulatory Capture

Regulatory capture occurs when regulatory agencies, which are supposed to act in the public interest, become influenced or dominated by the industries they are meant to oversee. This can happen when regulators develop close relationships with industry representatives, leading them to prioritize the interests of businesses over those of the public. As a result, regulations may be weakened or ignored, allowing companies to operate in ways that could be harmful or unfair. Essentially, instead of protecting consumers and ensuring fair practices, the agency may end up serving the interests of the very industries it's supposed to regulate.