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29 Ottawa L. Rev. 233 (1997-1998)
The Privatization of Regulation: Five Models of Self-Regulation

handle is hein.journals/ottlr29 and id is 239 raw text is: THE PRIVATIZATION OF REGULATION: FiVE MODELS OF SELF-REGULATION Margot Priest Five models of self-regulation are described and classified according to ten characteristics and assessed according to public interest criteria. The legal structure of self-regulation is reviewed, including the implications of delegation of government power, the accountability for the exercise ofpower, and judicial review. Liability under the Competition Act and negligence are discussed, as are policies that complement the use of self-regulation. The paper concludes that self-regulation is most likely to work when certain conditions are present, such as: There are relatively few industry players; the exit costs are high; there is a history of cooperation; expertise and resources for regulation are available in the industry; noncompliant behaviour can be punished; consumers value compliance; fair dispute settlement mechanisms are in place; and, some role is available for public participation or oversight. There is untapped potential for the use of self-regulation, but evidence of regulatory failures indicates that government cannot completely abdicate responsibility when a regulatory problem requires a government response. Dans cet article, l'auteure dicrit cinq modales d'autordglementation, les classe selon dix caractdristiques, puis les 6value en fonction de crit~res relatifs 6 l'intir~t public. Elle passe en revue l 'encadrementjuridique de l'autoriglementation, y compris les consdquences de la ddldgation d'un pouvoir gouvernemental, la responsabiliti de l'exercice dupouvoir et la rivisionjudiciaire. En outre, 1 'auteure discute de la responsabiliti en vertu de la Loi sur la concurrence, de la nigligence et des politiques qui complktent I'utilisation de I'autoriglementation. L'auteure conclut que l'autordglementation est tras susceptible de fonctionner lorsque certaines conditions sont rjunies, notamment lorsqu 'ily a relativement peu de participants ou de participantes dans le secteur de 1'industrie; les frais de sortie sont glevis; il y a une tradition de coopiration; il y a dans l'industrie une expertise et des ressources pour la riglementation; I 'inobservation de la rdglementation peut 6tre sanctionnde; les consommateurs et les consommatrices apprdcient 1 'observation de la riglementation; des mdcanismes iquitables de rglement des diffdrends sont en place et le public peut participer ou exercer une surveillance. On n 'apas encore tird parti de toutes lespossibilitds qu'offre I 'utilisation de l'autordglementation, mais la preuve de la faillite rdglementaire ddmontre que le gouvernement ne peut pas complitement abandonner ses responsabilitds quand un probl~me rdglementaire ndcessite une intervention gouvernementale. ' Partner, Regulatory Consulting Group Inc., Ottawa. The author would like to acknowledge the advice and support of Professors Liora Salter and Ellen Baar of York University, Professor Michael Trebilcock of the University of Toronto, and Professor W.T. Stanbury of the University of British Columbia. All errors and omissions remain those of the author, of course. Thanks are also given to Olga Avramenko for her help and support.

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