The strengths and weaknesses of
self regulation
Dr Jon Bell
Formerly Chief Executive
UK Food Standards Agency
The case for and against command
and control regulation (1)
• Define required behaviour
• Set standards
• Clearly set out offences and penalties
The case for and against command
and control regulation (2)
• Blunt instrument
• Can be costly and act as a brake on innovation
• Always follows new activities, never precedes
them
• Only sets minimum standards
Aims of self regulation
• Ensure a properly functioning market
• Ensure a responsible industry
• Ensure a commitment to published standards
• Effective action in the event of a breach
• Easy and low cost to administer
• Responsive to change
Advantages and disadvantages
• Possible advantages:
–
–
–
–
Driven by those being regulated
Embeds responsibility for compliance
Flexible
Low cost
Advantages and disadvantages
• Possible disadvantages
–
–
–
–
–
Conflicts of interest
Lack of confidence in the process
Weak sanctions
Lack of transparency
Narrowness of interpretation of the rules
Drivers (1)
• Industry:
–
–
–
–
Threat of command and control regulation
Name and shame by the authorities
Desire to raise standards and confidence
Desire to prevent damage by rogue operators
Drivers (2)
• Government:
–
–
–
–
Desire to keep costs down
Enables minimal government interference
Maximises flexibility
Strengthens corporate responsibility
Suitability for different sectors
• Required standards of behaviour are well understood
• No risk of serious or widespread harm
• Industry cohesiveness and maturity
• Competitive market
Ways of avoiding or reducing the
disadvantages (1)
• Involve outside parties
• External policing
• External auditing
Ways of avoiding or reducing
disadvantages (2)
• Clear and transparent rules
• Allow group action by consumer bodies
• Clear appeals procedures
Examples of sectors in the UK
which have tried self regulation
• Successfully
– Advertising
– The medical profession
– The press
• Unsuccessfully
– The police
– Lawyers
– Gas safety
Perceptions about self regulation
• The public
• Politicians
• Industry
Issues requiring particular
attention
•
•
•
•
•
•
Funding
Expertise and background of independants
Transparency
Speed of response
Appeals system
Mandatory participation?
Conclusions
• Workable alternative to command and control
regulations in appropriate circumstances
• Not suitable for all sectors
• Perceptions are all important
0
