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Regulatory Arbitrage

Meaning

Regulatory arbitrage describes the strategic practice of exploiting differences, inconsistencies, or loopholes between regulatory frameworks across different jurisdictions or product classifications to gain a commercial or operational advantage. In the context of hormonal health and wellness, this often involves classifying a substance or product in a less-regulated category, such as a dietary supplement or a research chemical, to bypass the rigorous and costly approval processes required for pharmaceutical drugs. This practice raises significant concerns regarding product quality, purity, and patient safety.