Trade Associations and the Growing Role of Industry Self-Regulation
The history of trade associations in the United States is deeply connected to the evolution of American business, especially intertwined with the impact of an industrializing economy and the array of regulations those industries spawned. And now, increasingly, that trade association history is tied to industry self-regulation.
In an era where innovation often outpaces legislation and regulation, thoughtful and accountable industry self-regulation is not just a stopgap; it is a strategy for long-term public trust and sustainable industry growth. And in a period punctuated by deregulatory announcements and evolving public expectations, self-regulatory initiatives are emerging as a pragmatic solution for trade associations to address complex business and public policy challenges.
As I have written previously on these pages, most recently in an article on cross-border industry self-regulation, BBB National Programs stands at the forefront of this movement, offering robust accountability mechanisms that distinguish our approach and provide a model for effective self-regulation.
While our organization is the home of independent industry self-regulation in the U.S., other trade association models of industry self-regulation abound. Increasingly, too, trade associations have been instrumental in developing self-regulatory frameworks that not only uphold standards in their respective industries but also promote competition and foster consumer trust.
This is not the first time that trade associations have been central to the debate over public-private regulatory frameworks. Nearly 100 years ago, under the National Industrial Recovery Act (1933), trade associations were encouraged to develop “codes of fair competition.” Although the Act was later ruled unconstitutional by the U.S. Supreme Court on other grounds, in part it legitimized the idea of industry self-governance.
The post-WWII economic boom led to a proliferation of trade associations across virtually every sector. Associations began to build lobbying and public affairs operations in Washington, DC, helping shape federal regulatory and tax policies. They also provided training, certification programs, and industry standards, effectively acting as self-regulatory entities.
In the last two decades, emerging technology, data privacy, cybersecurity, and other governance concerns have introduced even more complex regulatory challenges. Here also, trade associations have increasingly partnered with independent third parties to create credible accountability mechanisms.
Indeed, trade associations often play a central role in the development of ethics guidelines, member certification, and other industry-wide initiatives, helping fill gaps where legislation lags technological change. At the same time, some associations face scrutiny from the public, media, and policymakers, especially when their self-regulatory efforts are seen as insufficient or self-serving.
For instance, the Receivables Management Association Internation (RMAI) offers a certification and education program with requirements that go above and beyond those required by law. The program certifies collection agencies, debt buying companies, collection law firms, vendors, and brokers. (Full disclosure: A couple of our organization's leaders serve on an appeal board for one of the RMAI's certification programs.)
The Retail Industry Leaders Association (RILA) has developed a retail compliance center that empowers retailers to build robust ethics and compliance programs through retail-specific compliance education, resources, tools, and peer benchmarking.
And, the Association of National Advertisers (ANA) offers robust accountability programs, such as the ANA Center for Ethical Marketing, which helps empower businesses to build brand and consumer trust through best practices, guidelines, guidance, compliance services, and committees. (Full disclosure: The ANA is one of our many partners, and its CEO is a member of our board of directors.)
New technologies also lend themselves to self-regulatory models, whether technologies developed decades ago, such as that of the cellular industry, or with respect to newly evolving technologies such as generative and agentic AI.
While no single trade association has achieved status as the most widely recognized leader in AI, several groups are recognizing that industry responsibility is key to achieving trust in the marketplace. For example, the Frontier Model Forum, which is dedicated to advancing frontier AI safety and security, leans on the expertise of its member companies to make sure that even the most advanced AI systems remain secure.
To be sure, industry self-regulation is not just about new technology, and sometimes the work behind it may not seem obvious to a consumer. For instance, there are many standard-setting organizations that play a critical role in ensuring interoperability, quality, safety, and fairness across markets and sectors, and several of these are affiliated with associations, such as the American National Standards Institute (ANSI), the American Society for Testing and Materials (ASTM), and the American Society for Mechanical Engineers (ASME).
Research and teaching in this space is also growing, adding rigor and insight to the conversation, and pointing to the potential for self-regulation to serve as a durable complement – or alternative – to traditional regulatory models.
Noteworthy and new is Daniel E. Waters and Hannah J. Wiseman’s recent Houston Law Review article, Self-Regulation in Emerging and Innovative Industries, in which they write: “There is a robust literature exploring the conditions under which effective self-regulation is likely to work as a partial or complete substitute for government regulation..." Last year, Dr. Nicol Turner-Lee from The Brookings Institution asked the thought-provoking question: Can Social Media Companies Engage in Self-Regulation? And University of Oklahoma William J. Alley Professor of Law Tracy Hresko Pearl, writing in the Brigham Young University Law Review, asked “Is an Autonomous Vehicle a Roller Coaster or a Hollywood Film? Trust, Safety, and Industry Self-Regulation.”
The evolution of trade association-led self-regulation underscores a critical shift in how industries govern themselves, one that blends innovation with responsibility. From advertising to artificial intelligence, industry self-regulation – especially when designed with independent oversight – has become a powerful tool for trade associations in shaping ethical standards, fostering trust, and advancing sector-wide best practices.
Originally published in Forbes.
In an era where innovation often outpaces legislation and regulation, thoughtful and accountable industry self-regulation is not just a stopgap; it is a strategy for long-term public trust and sustainable industry growth. And in a period punctuated by deregulatory announcements and evolving public expectations, self-regulatory initiatives are emerging as a pragmatic solution for trade associations to address complex business and public policy challenges.
As I have written previously on these pages, most recently in an article on cross-border industry self-regulation, BBB National Programs stands at the forefront of this movement, offering robust accountability mechanisms that distinguish our approach and provide a model for effective self-regulation.
While our organization is the home of independent industry self-regulation in the U.S., other trade association models of industry self-regulation abound. Increasingly, too, trade associations have been instrumental in developing self-regulatory frameworks that not only uphold standards in their respective industries but also promote competition and foster consumer trust.
This is not the first time that trade associations have been central to the debate over public-private regulatory frameworks. Nearly 100 years ago, under the National Industrial Recovery Act (1933), trade associations were encouraged to develop “codes of fair competition.” Although the Act was later ruled unconstitutional by the U.S. Supreme Court on other grounds, in part it legitimized the idea of industry self-governance.
The post-WWII economic boom led to a proliferation of trade associations across virtually every sector. Associations began to build lobbying and public affairs operations in Washington, DC, helping shape federal regulatory and tax policies. They also provided training, certification programs, and industry standards, effectively acting as self-regulatory entities.
In the last two decades, emerging technology, data privacy, cybersecurity, and other governance concerns have introduced even more complex regulatory challenges. Here also, trade associations have increasingly partnered with independent third parties to create credible accountability mechanisms.
Indeed, trade associations often play a central role in the development of ethics guidelines, member certification, and other industry-wide initiatives, helping fill gaps where legislation lags technological change. At the same time, some associations face scrutiny from the public, media, and policymakers, especially when their self-regulatory efforts are seen as insufficient or self-serving.
Trade Association Self-Regulation: A Few Models
A wide array of industry-specific associations has successfully implemented self-regulatory programs that other trade groups can learn from or choose to model.For instance, the Receivables Management Association Internation (RMAI) offers a certification and education program with requirements that go above and beyond those required by law. The program certifies collection agencies, debt buying companies, collection law firms, vendors, and brokers. (Full disclosure: A couple of our organization's leaders serve on an appeal board for one of the RMAI's certification programs.)
The Retail Industry Leaders Association (RILA) has developed a retail compliance center that empowers retailers to build robust ethics and compliance programs through retail-specific compliance education, resources, tools, and peer benchmarking.
And, the Association of National Advertisers (ANA) offers robust accountability programs, such as the ANA Center for Ethical Marketing, which helps empower businesses to build brand and consumer trust through best practices, guidelines, guidance, compliance services, and committees. (Full disclosure: The ANA is one of our many partners, and its CEO is a member of our board of directors.)
New technologies also lend themselves to self-regulatory models, whether technologies developed decades ago, such as that of the cellular industry, or with respect to newly evolving technologies such as generative and agentic AI.
While no single trade association has achieved status as the most widely recognized leader in AI, several groups are recognizing that industry responsibility is key to achieving trust in the marketplace. For example, the Frontier Model Forum, which is dedicated to advancing frontier AI safety and security, leans on the expertise of its member companies to make sure that even the most advanced AI systems remain secure.
To be sure, industry self-regulation is not just about new technology, and sometimes the work behind it may not seem obvious to a consumer. For instance, there are many standard-setting organizations that play a critical role in ensuring interoperability, quality, safety, and fairness across markets and sectors, and several of these are affiliated with associations, such as the American National Standards Institute (ANSI), the American Society for Testing and Materials (ASTM), and the American Society for Mechanical Engineers (ASME).
Responsible Business Practices Without Government Intervention
As the pace of innovation accelerates and public scrutiny of corporate behavior intensifies, industries are increasingly seeking ways to ensure responsible practices without relying solely on government intervention. Amid this shift, trade associations are stepping into a more prominent role, championing self-regulatory models that offer both flexibility and accountability.Research and teaching in this space is also growing, adding rigor and insight to the conversation, and pointing to the potential for self-regulation to serve as a durable complement – or alternative – to traditional regulatory models.
Noteworthy and new is Daniel E. Waters and Hannah J. Wiseman’s recent Houston Law Review article, Self-Regulation in Emerging and Innovative Industries, in which they write: “There is a robust literature exploring the conditions under which effective self-regulation is likely to work as a partial or complete substitute for government regulation..." Last year, Dr. Nicol Turner-Lee from The Brookings Institution asked the thought-provoking question: Can Social Media Companies Engage in Self-Regulation? And University of Oklahoma William J. Alley Professor of Law Tracy Hresko Pearl, writing in the Brigham Young University Law Review, asked “Is an Autonomous Vehicle a Roller Coaster or a Hollywood Film? Trust, Safety, and Industry Self-Regulation.”
The evolution of trade association-led self-regulation underscores a critical shift in how industries govern themselves, one that blends innovation with responsibility. From advertising to artificial intelligence, industry self-regulation – especially when designed with independent oversight – has become a powerful tool for trade associations in shaping ethical standards, fostering trust, and advancing sector-wide best practices.
Originally published in Forbes.