Oct. 23, 2023
Complex regulations often place unfair and disproportionate burdens on certain groups, even if that's not the intent. Some examples of how this can occur: Small businesses - Compliance costs are disproportionately heavy for small companies with limited legal/accounting resources. Puts them at a competitive disadvantage. New entrants - Complex entry and compliance rules create barriers for innovative startups trying to compete with established players. Low-income individuals - Regressive effects if compliance costs are fixed, absorbing a larger share of income for the poor. Can reduce access. Minorities - Language/comprehension barriers mean complex rules disproportionately burden non-native speakers. Rural populations - Lack of legal/financial infrastructure in rural areas increases costs of navigating dense regulations. Individual investors - Complex investing rules favor institutional investors with teams of experts. Undermines equal access. Consumers - Opaque terms, disclosures, and processes in regulated consumer industries reduce understanding of rights. While often unintentional, high regulatory complexity frequently disparately impacts under-resourced groups. Simplification through plain language and streamlined compliance can help mitigate these equity concerns. More analysis of distributional effects is needed in rulemaking. Sent with Proton Mail secure email.