In a new report commissioned by Citizens Advice, Frontier explores the relationship between consumer protection and economic growth — and how targeted regulation like this can deliver benefits for consumers and for the wider economy.

Consumer protection is one form of regulation, focused on safeguarding the rights of consumers in their interactions with businesses and organisations. It helps ensure fair trade, accurate information, and safe products and services. The justification for any form of regulation – including consumer protection – is in response to market failures, with the intention of making markets function better.

Our report found that the direct link between consumer protection and economic growth can be difficult to establish, as the evidence base needs to be developed further. However, by reviewing the existing literature, evidence and economic thinking, we found that when Government intervention (including consumer protection) addresses market failure, this efficiency creates economic growth by ensuring that resources are used in a way that:

• enhances competition between providers;
• promotes investment and expansion;
• encourages innovation and improvement; and
• increases productivity.

In turn, these factors can contribute to an increase consumer trust and confidence and boost demand.

Our research will help engage Government, regulators, industry and other interested stakeholders on how to deliver growth.

Click here to read the full report: How to Deliver Tangible Growth in Consumer Markets