Curbing Consumer Financial Losses: The Economics of Regulatory Enforcement

M.G. Faure*, A.I. Ogus, N.J. Philipsen

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

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This article deals with the question of how a high level of compliance with consumer protection legislation designed to prevent financial losses can be secured. We use a theoretical framework based on economic analysis of law to address some of the key policy options, such as proactive and reactive monitoring, providing officials with postdetection enforcement discretion, administrative, civil, and criminal sanctions, and facilitating actions by victims and third parties. On the basis of our theoretical framework and a classiffication of jurisdictions into different groups (models of enforcement policy), we identify some key elements of an enforcement regime and indicate in what circumstances a particular solution can be expected to be more or less cost effective.
Original languageEnglish
Pages (from-to)161-191
JournalLaw and Policy
Issue number2
Publication statusPublished - 1 Jan 2009


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