Regulated Industry. You’ve heard the phrase—and maybe even used it—but do you actually know what it means?
Defining “Regulated Industry”
In the basic sense, a regulated industry is an industry that is significantly regulated by the state or federal government. This can include setting parameters and guidelines for anything from pricing and profits to production methods and even social media efforts. Common regulated industries include financial, healthcare, pharmaceutical and insurance.
Examples of Regulated Industry Regulations
An example of a regulation placed on these industries can be seen with any publicly traded company. The Regulations Fair Disclosure mandates that all publicly traded companies release material information to investors and the public at the same time. This regulation is in place to help prevent selective disclosure and insider trading.
In healthcare industries, the Health Insurance Portability and Accountability Act of 1996, or HIPPA, ensures that medical information is kept confidential. Protecting the privacy of patients is critical—and HIPPA was set in place to help make sure that happens.
The Food and Drug Administration (FDA), places regulations on the pharmaceutical industry. Since the industry deals with drugs and healthcare devices, it makes sense that there are an array of rules and regulations on it. For example, the FDA requires pharmaceutical companies to report all cases of adverse effects to them.
The FDA’s List of Regulated Industries
The FDA makes it easy to know which industries are regulated—they created a listing of significantly regulated U.S. industries. If you’ve ever wondered about the laws and regulations placed upon these industries, the FDA is full of resources.
Clearly, these regulations affect the day-to-day operations of these industries. However, when it comes to developing a digital strategy, it can be especially challenging to mind these guidelines. This month we’re focusing our blog posts on the process and technology of regulated industries, including how social media is being used by these highly controlled industries. So stay tuned!
SOUND OFF: Do you have anything to add to our definition of a regulated industry?