Foreword

Achieving the right regulatory balance to promote an inclusive, innovative economy for all, while enhancing effective protection for consumers presents important challenges for regulators.

It also presents an opportunity for society - industry, consumers and government - to work together to produce new and innovative ways of reducing regulatory costs and enhancing consumer protection.

Industry-led approaches, such as voluntary codes of conduct and consumer dispute resolution schemes, have been encouraged by government and promoted by industry to achieve the outcome of consumers transacting with confidence. These tools stand as alternatives and complements alongside traditional regulatory approaches adopted by government.

Over the next year, the Ministry of Consumer Affairs will examine the effectiveness of current practices in industry-led regulation, as well as its role in the broader mix of regulatory approaches to consumer protection, redress and enforcement.

This paper starts the process by setting out a draft framework to help consumers and industry establish, operate and evaluate industry-led regulatory schemes. The aim of the framework is to empower consumers and industry in understanding the effectiveness of a particular scheme.

I encourage industry and consumers to participate in this review and help build an effective and efficient regulatory environment.

Hon Judith Tizard
Minister of Consumer Affairs