Curbing consumer financial losses: The economics of regulatory enforcement

Michael Faure, Anthony Ogus, Niels Philipsen

Research output: Contribution to journalArticlepeer-review


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 classification 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. © Journal compilation © 2009 Baldy Center for Law and Social Policy.
Original languageEnglish
Pages (from-to)161-191
Number of pages30
JournalLaw and Policy
Issue number2
Publication statusPublished - 2009


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