Consumer Policy Tools

Background Paper to Creating Confident Consumers

May 2003

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Occupational Regulation

Occupational regulation may serve a number of goals, including consumer policy goals. [34] In the past, it has often served to protect professions or industries from competition. More recently, occupational regulation has been seen as an effective tool to provide consumer protection, and it can have a significant impact on the cost of information. If a consumer seeks services or products from a member of a regulated profession, the cost of information is reduced because assumptions can be made as to the competence and performance of that member.

However, if occupational regulation is not based on relevant quality control standards, it will not reduce information costs. Instead, it may increase the gap between expectations and reality by giving the impression that the occupational regulation indicates an actual level of safety or competence. [35]

[34] See generally Ministry of Economic Development, Policy Framework for Occupational Regulation: A Guide for Government Agencies Involved in Regulating Occupations (1999).

[35] Supra at note 2, at 159.

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