Legal Definitions - Regulation

A Regulation is an official rule or directive issued by a government agency to implement and enforce a broader law passed by a legislative body. While legislatures (like Congress or state assemblies) create general laws, they often grant specific administrative agencies the authority to develop detailed rules necessary to carry out those laws effectively within their area of expertise. These detailed rules are what we call regulations, and they govern specific activities, industries, or conduct to achieve objectives such as public safety, environmental protection, or economic fairness.

Here are some examples to illustrate the concept of a regulation:

• Example 1: Environmental Protection

  After Congress passes a law requiring clean air, the Environmental Protection Agency (EPA) might issue a regulation specifying the maximum amount of certain pollutants that industrial factories are allowed to release into the atmosphere. This regulation provides the specific, measurable standards that factories must meet to comply with the broader clean air law.

  This illustrates a regulation because the EPA, a government agency, created a specific rule (the pollutant limit) to implement and enforce the general principle of clean air established by a legislative act.

• Example 2: Food Safety and Labeling

  A federal law might mandate that food products sold to consumers must be safe and accurately labeled. The Food and Drug Administration (FDA), a specialized agency, then develops detailed regulations that specify exactly what nutritional information must appear on food labels, how ingredients must be listed, and what constitutes a "serving size."

  This demonstrates a regulation as the FDA, acting under its delegated authority, created precise rules for food labeling to fulfill the broader legal requirement for safe and informative food products.

• Example 3: Financial Market Conduct

  Congress passes a law to protect investors from fraud in the stock market. The Securities and Exchange Commission (SEC), the agency responsible for overseeing financial markets, then issues regulations requiring public companies to disclose their financial performance quarterly in a standardized format. These regulations also dictate what information must be included in prospectuses for new stock offerings.

  This is an example of a regulation because the SEC, a government agency, established specific rules for financial reporting and disclosures to implement the broader legislative goal of protecting investors and ensuring market transparency.