Effective industry-led regulation

28 July 2005
Industry, government and consumers working together to find innovative solutions for enhancing consumer protection and reducing regulatory costs is the focus of a discussion paper, Industry-led Regulation, which was released today by the Consumer Affairs Minister Judith Tizard.

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

Industry-led approaches to regulation include voluntary codes of conduct and consumer dispute resolution schemes. The range of industry-led regulation covers such well known schemes as the Banking Ombudsman and Electricity and Gas Complaints Commission, as well as a variety of other industry codes of practice.

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 discussion 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,” said Judith Tizard.

Note | Submissions on the discussion paper close 14 October 2005 and should be sent to Ministry of Consumer Affairs, P O Box 1473, Wellington – Attention Geoffrey Leveritt.

Copies of the discussion paper are available on the Ministry of Consumer Affairs website in the Legislation & Policy section.