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Essay / Advantages and disadvantages of reactive regulation - 1042
The idea behind reactive regulation is that many elements must be taken into account before different approaches are necessary, for example, the context and behaviors of those who must be regulated as well as the culture of this trader. The responsive regulation model also recognizes the need for all enforcement strategies to be practical and context-specific. The method was described in the Medical Journal of Australia as "gentle words before harsh words, and carrots before sticks", meaning there should be softer sanctions initially, with the threat heavier sanctions if they continue to act as they have been. The foundations of responsive regulation are illustrated in the widely accepted regulatory pyramid from Responsive Regulator: Transcending the Deregulation Debate. This clearly demonstrates lighter sanctions at the bottom, up to harsher sanctions at the top, designed to be undesirable enough to prevent certain behaviors. Ayers and Braithwaite believed that using this model, regulators and regulations should focus the majority of their time on the bottom of the pyramid and only intensify measures when absolutely necessary and de-escalate procedures whenever possible. In the UK, the legislation in place to combat prohibited trading practices between traders and traders is the Consumer Protection from Unfair Trading Regulations 2008 (CPR). The CPR introduced broad prohibitions on commercial practices considered unfair to consumers. The bans cover deceptive as well as aggressive commercial practices. The overseers of these regulations are the Office of Fair Trading (OFT) and Trading Standards. One of the main issues surrounding paper self-regulation......ies. regulation seeks to solve quality problems by helping to offer better quality signals to customers, in addition to this, it incentivizes companies not to lie about the quality they actually produce and, to some extent, the CPR makes it less important that consumers observe product quality because the companies themselves monitor it for them. Responsive regulatory policy can be better than RPCs for regulating industries because they are able to tailor rules and guidelines to specific industry issues, in addition to thus, they can allow companies to share costs repairs and establishing their reputation. They are also able to overcome free-rider effects much more easily than CPRs. However, for self-regulatory programs to be successful, they must meet the overarching requirements.