ELI5: Explain Like I'm 5

Regulatory state

The regulatory state is when a government has rules and laws that they make businesses and people follow. This is done because it helps keep people and businesses safe, and helps make sure that people get treated fairly. For example, if a business is polluting the environment, the government might make a rule that they can't do that. Or if someone is trying to charge too much for a product, the government might make a rule that this isn't allowed.