Criminal Defense Lawyers

Options for Businesses to Comply With Overbroad

Dealing With Overly Broad Regulations: Options for Businesses

Businesses these days have to follow a ton of rules and regulations in all kinds of areas – hiring, marketing, advertising, you name it. I get that the goal is to protect customers and employees, which is important. But sometimes these regulations go too far and make it really hard for companies to do their work.As a business owner myself, I’ve been in this situation many times. The regulation says you can’t do something that should be perfectly reasonable in your business. It’s frustrating! But you still gotta follow the law.So what can you do if you’re faced with a regulation that’s just too broad? Here are some options I’ve found that help balance following the rules with running your business effectively:

Step 1: Pinpoint the Problem Areas

First things first – review that regulation with a fine-tooth comb. Have your legal team look at it too so you understand exactly what’s covered. The goal is to identify the specific parts that are too restrictive for your industry or business model. Circle those! Leave the reasonable stuff alone and focus on the overbroad sections.

Step 2: Speak Up and Request Changes

If it’s a new regulation being proposed, take advantage of the public comment period. Explain how the broad language would hurt businesses like yours. Give concrete examples of reasonable activities that would get banned. Ask them to tailor it more narrowly.For existing regulations, you may be able to ask the regulators for an “advisory opinion” on how they interpret the rules to apply to you. Or petition them to change the regulation through the administrative process.

Step 3: Work Around the Problem Areas

If you can’t get the regulation fixed, you’ll have to live with it. Review case-by-case to see if you can tweak practices to comply while limiting damage.For example, say a rule bans certain useful ad claims. Maybe you can reword the ads to avoid the iffy claims but still market the benefits.

Step 4: Focus on What’s Most Important

Figure out the core parts of your business and devote most compliance efforts there. For the peripheral stuff that’s over-restricted, consider cutting back in those areas.If one product line is way more affected than others, shift business away from that product and toward safer options.

Step 5: Increase Transparency

Sometimes these broad regulations try to protect consumers but go overboard. Being upfront with customers can allow you to maintain certain practices they find valuable.Provide clear disclosures, explain benefits/risks, and let customers give feedback. This shows you’re acting in good faith.

Step 6: Weigh the Risks

Non-compliance can lead to lawsuits or penalties. But the business impacts of complying might be bad too. Carefully weigh the risks versus benefits in each case.Try containing non-compliance to limited areas to reduce risk. Get legal advice here for sure.

Step 7: Make Structural Changes

In some cases, companies shift affected operations into separate legal entities to limit regulation reach. Or divest over-regulated business units. Adds complexity but contains the issue.

Step 8: Lobby for Reform

Educate policymakers and the public on the negative impacts of overbroad rules. Garner support for more reasonable versions. PR campaigns help put pressure on regulators.

Step 9: Leverage Industry Groups

Trade associations provide strength in numbers. Coordinate with industry peers on compliance strategies and resources. A unified voice carries more weight.

Step 10: Analyze Costs and Benefits

Do a detailed cost-benefit analysis of compliance vs. non-compliance. Helps find the right balance between legal risk and operational needs.

Step 11: Adapt and Innovate

Look for creative ways to market, operate, and serve customers despite restrictions. Innovation can happen when forced. Dealing with overbroad regulations is frustrating! But taking a proactive approach focused on compliance in the right areas, speaking up for reform, managing risks, and innovating can help your business follow the rules while still thriving. Reach out if you need help navigating the regulatory maze!