starshipcat (starshipcat) wrote,

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The Price of Compliance

One of the problems of having a large number of independent executive agencies drafting regulations that have the force of law, all without reference to each other, is the sheer amount of effort a business has to expend on staying in compliance with all of them. Unfortunately, economies of scale often make it easier for large corporations to keep track of all those acres and acres of regulations, while the burden of compliance can become crushing for a mom and pop operation.

Worse, big businesses can often find ways to game the regulatory system to their advantage, especially if they can get their own people (or their relatives) into the regulatory agencies. They can even treat fines as simply a cost of doing business, if they are big enough, especially if different agencies have written contradictory directives into regulatory law. Whereas a small local operation may be stuck hoping that they can fly under the regulatory agencies' radar, since there's no way to simultaneously do both A and not-A, and paying the fine would bankrupt them.
Tags: business

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