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.

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.

Warning: too much information can harm consumers

The government has announced a series of measures to help consumers make informed choices and understand the potential dangers or risks of products and services they purchase.

“Warning: Too Much Information Can Harm”  is a joint report from the Department for Business Enterprise and Regulatory Reform and National Consumer Council about the effectiveness of government requirements on business to provide information to consumers. It finds that much of the information provided with products and services is rejected by consumers because it is unhelpful or presented in a complex or unappealing format .

Ed Mayo, NCC Chief Executive, said: “Consumers would welcome a common sense approach. Too much of what’s provided is turgid and confusing. ‘Typical time wasters include over 50 safety warnings for a toaster, 17 recycling symbols which few people recognise, and the hour it takes to read a credit agreement.”

Download the final report here

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