What occurs when industries "capture" Independent Regulatory Agencies?

When industries "capture" Independent Regulatory Agencies, it typically leads to a promotion of pro-business behavior. This phenomenon occurs when the interests of a specific industry come to dominate the agenda and operations of the regulatory agency that is supposed to oversee it. In this captured environment, the agency may prioritize the interests of that industry over public interest or consumer protection, resulting in regulations that favor business operations, reduce compliance burdens, or allow further industry lobbying.

This capture can manifest in various ways, such as the agency becoming less stringent in enforcing regulations or providing favorable treatment for certain companies. As a result, the primary goal of such agencies—ensuring fair practices, protecting consumers, and maintaining competition—may be subverted, leading to potential conflicts of interest and a regulatory stance that leans heavily toward business-friendly outcomes.