Consumers First: Smart Regulation for Digital Australia

Abstract

This paper investigates principles-based regulation and whether or not it should be adopted as an appropriate regulatory framework for consumer protection in Australian digital communications. It argues that principles-based regulation is superior to rules-based regulation because it gives each business the flexibility to meet regulatory obligations in the most efficient way while also empowering the regulator to playa more effective role in ensuring consumer protection in a fast moving sector. Such an approach helps consumers by making their welfare, rather than compliance with a set of rules, the focus of regulation and helps business by focusing regulation on outcomes rather than detailed regulatory procedures.