Self-Regulation Is a Tool to Mitigate Litigation

Oct 15, 2021 by Eric D. Reicin, President & CEO, BBB National Programs and Abby Adams, Senior Counsel, Dispute Resolution Programs, BBB National Programs

It is easy, especially for attorneys, to be cynical about industry self-regulation. Expecting businesses to hold themselves accountable and resolve disputes autonomously might seem unrealistic, especially when court dockets are full and regulatory oversight is increasing.

However, independent industry self-regulation, when developed and implemented properly, is a powerful tool for enhancing consumer trust in business and protecting consumers. And as we emerge from the reduced trust in government wreaked by the COVID-19 pandemic, it is time for independent industry self-regulation to help solve vexing business problems. In-house counsel can play an important leadership role in those efforts. 

 

What is independent industry self-regulation?

Independent industry self-regulation is a process where a self-regulatory organization (SRO), such as a trade/membership association, a professional society, or a nonprofit:

  • Sets standards, guidance, or industry pledges;
  • Monitors industry members for compliance; and
  • Enforces those standards and other industry rules relating to the conduct of businesses in that industry, typically through an independent third party.

 

This voluntary — yet accountable — system helps businesses decrease risks to consumers, increases public trust, combats negative public perceptions, and reduces significant litigation expenses, resulting in cost savings.

To read the full article, visit the ACC Docket.

Suggested Articles

Blog

Old MacDonald Had an Engagement Farm: Lessons Learned from FTC v. NGL

Capturing user engagement is the foundation of internet commerce. And while the incentives to prompt greater engagement are certainly understandable, the recent NGL Labs case from the FTC raises important questions about the ethical and legal ramifications when companies try to artificially generate engagement among their userbase.
Read more
Blog

Independence Day Edition: CBPR Framework Offers “Checks & Balances”

Going, Going, Gone Global, a webinar on the CBPR Global Forum, delved into how privacy impacts businesses’ brand reputation and builds trust with key stakeholders, discussed the purpose of the Global CBPR, and its value to Global Forum members.
Read more
Blog

Industry Self-Regulation: Part of the Solution for Governing Generative AI

The spotlight on generative AI remains bright. The benefits and risks continue to be ever-present in the minds of business and political leaders. No matter the timing or the setting, the creation of transparency, accountability, and collaboration among stakeholders is key to successful industry self-regulation as is the importance of setting standards and best practices.
Read more
Blog

The Demise of “Chevron Deference”: Who Will Fill the Regulatory Gaps?

The Supreme Court's 1984 ruling in Chevron v. NRDC held that courts should defer to federal agencies’ interpretations of ambiguous federal laws so long as those interpretations are reasonable. So given the court’s decision to overturn it, where does that leave companies that want a level playing field and perhaps even to raise the bar, instead of racing to the bottom?
Read more