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regulatory agency

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regulatory agency

Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. government in 1887, and regulatory agencies exist almost exclusively in the U.S. The theory is that a commission of experts on the industry being regulated is better equipped to regulate it than the legislature or executive departments. Designed to operate with a minimum of executive or legislative supervision, agencies have executive, legislative, and judicial functions, and their regulations have the force of law. Important regulatory agencies include the Food and Drug Administration, OSHA, the Federal Communications Commission, and the Securities and Exchange Commission.



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