The happy medium is the have enforcement mechanisms of the tends of thousands of existing regulations that would put a scam business out of existence if a DA choose to.

The fact of the matter is that to protect people... you need to have a system where ordinary people can complain, and companies get taken to task.

99% of preventative/reporting regulation is just cronyism.

We may wish regulations were for a different reason, but this is certainly their most common use case.