There is a different kind of legal and regulatory forces that affect REI in the U.S:

1) The federal state and local law and agency affect the REI as well as other business. For regulating the competition for avoiding unfair practices, free trade commission is being set up. The agency of consumer protection helps to preserve consumer health and safety. As REI has several own-label goods, they must make sure that they are protected to avoid claims and large penalties.

2) REI is a customer organization that has different regulation for governing how to handle their business. This provides them some tax benefit over the competition but maybe a disadvantage when it happens to investment and retained earnings.