Well, in our current system regulatory bodies do get lobbied by various industries to influence how regulations get implemented. For example, the trucking industry has lobbied the NHTSA hard to keep the safety barrier systems on the sides and rear of trucks minimal even though the extreme dangers of those types of accidents are well known.
Lobbying various regulators is one of the largest "hidden" influence system we have today. Most folks don't know that regulators ARE influenced by industry groups and chose their regulations accordingly. There is also a "revolving door" of former regulators being employed by the industry or lobbying groups after their service time in office.
NHTSA Chief David Strickland Gets Caught in the Revolving Door | Streetsblog USA
Now, I think the current head of the NHTSA is pretty agressive on fighting for more safety and has really been cracking down on the industry, but in the past that hasn't always been true.