Regulatory due process safeguards against arbitrary decisions from "summary" of The Economics of Regulation: Principles and Institutions: Economic principles by Alfred Edward Kahn
Regulatory due process ensures that decisions made by regulatory agencies are not arbitrary or capricious. It is a fundamental principle designed to protect the rights of individuals and businesses affected by regulatory actions. Without due process safeguards, regulatory agencies could potentially make decisions that are not based on sound reasoning or established criteria. By requiring regulatory agencies to follow established procedures and guidelines, due process helps to ensure transparency and accountability in the regulatory process. This helps to prevent regulatory agencies from making decisions that are influenced by bias, personal preferences, or other improper considerations. Due process also provides affected parties with an opportunity to present evidence, arguments, and objections before a decision is made. One of the key components of regulatory due process is the requirement for agencies to provide notice to affected parties before taking any regulatory action. This gives parties a chance to prepare and respond to the proposed action, thereby promoting fairness and equity in the regulatory process. Additionally, due process often requires agencies to provide a reasoned explanation for their decisions, which helps to ensure that decisions are based on established criteria and sound analysis. Another important aspect of regulatory due process is the opportunity for affected parties to seek review or appeal of regulatory decisions. This allows parties to challenge decisions that they believe are arbitrary, unreasonable, or not supported by the evidence. The availability of review or appeal processes serves as a check on the power of regulatory agencies, helping to prevent abuses and protect the rights of affected parties.- Regulatory due process plays a crucial role in safeguarding against arbitrary decisions by regulatory agencies. By requiring agencies to follow established procedures, provide notice and explanation, and allow for review or appeal, due process helps to promote fairness, transparency, and accountability in the regulatory process. It is an essential component of good governance and the rule of law in regulatory systems.
