Effective competition is, in most markets, the most efficient mechanism to ensure a fair deal for consumers. In theory, when markets are functioning properly, businesses must win customers, who in turn will be able to make informed choices, easily switch between providers, and identify rogue traders. However, markets rarely function properly.

The NCC's instinct is against knee-jerk calls for regulation, since many problems can be tackled with better information and consumer advice. For the remainder, we need better legislation. We have a long and distinguished track record in calling for greater competition when others were concerned with protectionism and the promotion of so-called national champions.

In our work on markets and regulation, NCC is investigating markets which are failing consumers, pioneering new thinking about regulation and influencing the shape of our regulatory institutions. In an increasingly competitive global economy, if the UK falls short of the best of policy regimes, we will fail to reproduce the conditions for economic survival and success.

A challenge to garages

In 2006, we published a report highlighting that half of garages offer poor service to consumers, costing us as much as £4 billion annually. We challenged the car servicing and repair industry to prove that it could make self-regulation work, or face the prospect of regulation.

As a result of our campaign, we are pleased that the Motor Industry Service and Repair Code of Practice has been launched. The Code is a cross-industry initiative, facilitated by the Society of Motor Manufacturers and Traders, with the approval of the Office of Fair Trading. It sets out standards that participating garages must comply with and is monitored through mystery shopping surveys.

Steve Brooker, one of our senior policy advisors said:

“The code of practice marks an important milestone towards achieving real improvements in a sector that has let down consumers for far too long. However, the code must be more than a paper promise - garages must sign up and then meet the standards set down. We hope garages recognise that there will never be a better opportunity to transform the motor industry and improve its reputation among consumers.”

For more on the Motor Industry Service and Repair Code of Practice click here.

Click here to download our report, At a crossroads.

Click here and here to read press releases on the campaign.

Rating regulators

A variety of regulators have been set up to further the interests of consumers in some way, for example by ensuring our safety, guaranteeting access to essential services or promoting competition. However, there has been little scrutiny as to whether these important organisations are performing their role effectively.

The NCC's Rating regulators project seeks to fill this gap. We will assess six regulators against core criteria that make up a consumer-focused regulator, such as culture, understanding consumers and intervening in markets. Our evidence will be drawn from a range of sources, including external reviews, discussion with stakeholders and interviews with staff at the regulators involved.

Each of the regulators in this project operates in markets concerned with the provision of essential services to consumers:

Financial Services Authority
Food Standards Agency
Ofcom
Ofgem
Ofwat
Postcomm

An independent panel has been established to advise NCC on the project, drawn from the worlds of government, academia, business and consumer policy.

Fresh thinking at the NCC

Our 'fresh thinking' series includes five pamphlets on regulation, listed below. Click on the titles to download them.

Making the European internal market work for consumers

Better regulation: the consumer contribution

Uniformity or diversity? The future of European consumer policy

Regulation and reputation

Consumers and Regulation