Curbing Consumer Financial Losses: The Economics of Regulatory Enforcement

31 Pages Posted: 27 Apr 2009

See all articles by Michael G. Faure

Michael G. Faure

University of Maastricht - Faculty of Law, Metro; Erasmus University Rotterdam (EUR) - Erasmus School of Law

Anthony Ogus

University of Manchester - School of Law; Erasmus University Rotterdam (EUR) - Erasmus School of Law

Niels J. Philipsen

Maastricht University - Faculty of Law, Metro

Abstract

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.

Suggested Citation

Faure, Michael G. and Ogus, Anthony I. and Philipsen, N. J., Curbing Consumer Financial Losses: The Economics of Regulatory Enforcement. Law & Policy, Vol. 31, Issue 2, pp. 161-191, April 2009. Available at SSRN: https://ssrn.com/abstract=1378384 or http://dx.doi.org/10.1111/j.1467-9930.2009.00299.x

Michael G. Faure (Contact Author)

University of Maastricht - Faculty of Law, Metro ( email )

PO Box 616
Maastricht, 6200 MD
Netherlands
+31 - 43 - 388 30 60 (Phone)
+31 - 43 - 325 90 91 (Fax)

HOME PAGE: http://www.michaelfaure.be

Erasmus University Rotterdam (EUR) - Erasmus School of Law ( email )

3000 DR Rotterdam
Netherlands

Anthony I. Ogus

University of Manchester - School of Law ( email )

Oxford Road
Manchester M13 9PL
United Kingdom

HOME PAGE: http://www.law.manchester.ac.uk/aboutus/staff/anthony_ogus/default.html

Erasmus University Rotterdam (EUR) - Erasmus School of Law ( email )

3000 DR Rotterdam
Netherlands
+31 -10-408-1585 (Phone)

N. J. Philipsen

Maastricht University - Faculty of Law, Metro ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands
+31 43 388 3256 (Phone)
+31 43 325 9091 (Fax)

HOME PAGE: http://www.maastrichtuniversity.nl/web/show/id=116435/langid=43

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