Regulations

Definition

Regulations are rules or laws implemented by government bodies or agencies to control or oversee specific activities within a particular industry or sector. They aim to protect public welfare, ensure fair competition, promote safety standards, and address societal concerns.

Analogy

Think of regulations as traffic rules on a busy road. Just like traffic rules help maintain order and prevent accidents on the road, regulations set guidelines for businesses and industries to follow in order to maintain fairness and prevent harm.

Related terms

Compliance: Refers to adhering or conforming to regulatory requirements or standards set by governing bodies.

Enforcement: The action of ensuring that regulations are followed through inspections, penalties for violations, or legal actions if necessary.

Deregulation: The process of reducing or removing government regulations in certain industries with an aim to increase competition and efficiency.