Discussion Paper Summary

May 1997

Mandatory and Voluntary Standards

Regulations may be made under the Fair Trading Act which set consumer information standards, product safety standards or safety standards for services. Such regulations are made by the Governor-General on the recommendation of the Minister of Consumer Affairs. In most cases, the Minister takes this action on the recommendation of the Ministry of Consumer Affairs.

There is often public debate when a product fails or an accident occurs about whether there should be more mandatory standards, particularly when one or more persons or agencies claim that the immediate solution is the introduction of a mandatory standard. This can be a difficult time to discuss the appropriateness of mandatory standards in an unemotive way.

Hence this paper has been prepared in the cold light of day to describe the conditions under which the Ministry is likely to recommend that a mandatory standard should be made, and when voluntary standards would be preferred. The paper assumes that a problem has been defined and it has been accepted that some action is required.

In making a decision on whether the making of a mandatory standard is the most appropriate action the Ministry considers other available options. These may include education, self-regulation by industry or taking no action at all.

Discussion Paper - full text

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