Ensuring Compliance in a Global World
Private Regulation series
Edited by Fabrizio Cafaggi
Introduction: The Transformation of Transnational Private Regulation: Enforcement Gaps and Governance Design
1 Fabrizio Cafaggi Transnational private regulation (TPR) is growing, giving rise to numerous regimes at the global level which interplay with public, international and domestic regimes. TPR encompasses regimes that primarily, but not exclusively, regulate ﬁrms operating in markets that extend beyond States’ boundaries. The scope ranges from trade (electronic platforms to trade goods, services and shares) to human rights, from food safety to ﬁnancial and banking, from professional (accounting, legal, medical) to technical (telecom, aviation, electricity) standards, from environmental to employment standards, and from advertising to data protection. Within each sector, global supply chains have become relevant global regulators, developing contractual regulatory tools which are applied to some or all participants.2 TPRs are frequently embedded within independent private orders, often pursuing conﬂicting policies; their normative foundations are primarily based on private autonomy, freedom of contract and association limited by constitutional and international laws. Thence, they are primarily regulated by their relevant constitutional contracts and/or organizational charters; gaps are ﬁlled by reference to domestic private law regimes, whereby 1 This introduction has strongly beneﬁted from deep and rich discussions with the EUI Casebook working group. My thanks go also to Rebecca Schmidt and Federica Casarosa for editorial and research assistance. Responsibility for the text is mine. 2 See on the relationship between private regulation and supply chains, S. Henson and J. Humphrey, ‘The impact of private food safety standards on the food chain and on public standard setting processes’, paper prepared for FAO/ WHO, May 2009, available at...