Regulatory Capture in Cosmetology Licensing Boards

Source: Show-Me Institute
by Corianna Baier

“Regulatory capture occurs when special interests gain control of regulatory agencies governing their own industries — regulators making the rules for themselves. You may think that a captured licensing board would have lenient regulations (who wants to subject themselves to strict rules?) but it’s much more common to see stricter rules with a captured licensing board. This is because the licensed board members directly benefit from punishing competitors and making it harder for newcomers to enter the market.” (11/10/21)