ELI5: Explain Like I'm 5

Compliance (regulation)

Compliance is like a set of rules or instructions that everyone needs to follow. It's like when your parents tell you to clean your room or brush your teeth before going to bed. You have to do it because if you don't, you might get into trouble.

In the same way, companies and businesses have to follow certain rules and laws set by the government. This is called regulation. Some regulations are about being safe, like wearing a helmet when riding a bike or a seatbelt in a car. Other regulations are about protecting the environment, like not throwing trash in the street or using energy-efficient light bulbs.

If a company doesn't follow these regulations, they can get into trouble, just like you might get into trouble if you don't follow your parents' rules. The government might give them a warning or a fine if they don't follow the rules.

So, compliance is about following the rules and regulations that are in place to keep us safe and protect the environment. If we don't follow them, we might get into trouble.