Understanding Consumer and Business Perspectives on Consumer Protection Regulations

Key findings

• Consumer protection regulations are not viewed as a barrier to growth or innovation. In fact, businesses are twice as likely to see these regulations as promoting innovation (33% say it encourages investment in safer, higher-quality products) compared to those that view it as a hindrance (only 15% believe it impedes innovation).
• Consumers value consumer protection regulations. Of those familiar with the regulations, nearly nine in ten (87%) said they value at least one benefit.
• Businesses also acknowledge the benefits of consumer protection, with three quarters seeing benefits to regulation (76%) in their sector.

Why are consumer protection regulations important?

Consumer protection regulation is designed to keep people safe from unfair treatment and harmful business practices. It ensures that businesses operate fairly, maintain a level playing field, and provide products and services of high quality while prioritising product safety. For example, regulation of retailers ensures that products meet safety standards and prevent the sale of hazardous or counterfeit items. This not only safeguards consumers but also supports fair competition by holding all sellers to the same quality and safety requirements. While regulation is sometimes seen as a burden, we believe, and our new evidence shows that consumers and businesses value well-balanced consumer regulations for both consumer confidence and growth.

Consumers see the benefits of regulations to protect them

Consumers clearly recognise the benefits of consumer protection regulations. Among the 65% of consumers who reported being familiar with these regulations, nearly nine in ten (87%) said they value at least one benefit. This shows a strong appreciation for the positive impact these regulations have on protecting them as a consumer.

What consumers value about consumer protection regulations (amongst those familiar with what they are)

Nearly half (48%) of these consumers feel that consumer protection regulations enhance their confidence in the safety of the products and services they buy, while 46% appreciate the protection they offer from misleading advertising and unfair practices. Over half (53%) value the accountability these rules enforce, ensuring businesses maintain quality and address issues when things go wrong. Additionally, 45% highlight how these protections make resolving complaints or obtaining refunds easier, streamlining the process for addressing problems.

These findings evidence the importance of these regulations in ensuring safety, fairness and fostering consumer trust. We would expect businesses to benefit too, as empowered consumers are more confident interacting with markets, and trying new products and services. 

Businesses also believe that there are benefits of consumer protection

The policy debate often frames businesses as being resistant to regulation, citing concerns about its impact on market dynamics and compliance costs. However, while businesses may face challenges related to regulation, our current research, surveying 1,000 UK businesses, shows they also acknowledge the substantial benefits it brings. 

Three quarters of businesses (76%) believe that consumer protection regulations offer multiple benefits, both to businesses and consumers. This suggests that many businesses see regulation not just as a compliance obligation but as a tool that supports both consumer interests and business success.

Advantages of consumer protection regulations

Businesses recognise that regulation plays a critical role in protecting individuals. For example, 57% of businesses believe that regulation shields consumers from bad or dangerous products or services, while 40% say it boosts consumer confidence, encouraging them to try new and innovative offerings. One business representative explained: 

“[Regulation] is very important to keep customers safe and healthy”

This sentiment was echoed by another business representative who noted that:

“Customers generally are well protected against businesses offering poor quality or misleading products or inappropriate conduct and have plenty of services they can complain to and get action from.”

Businesses also see the direct benefits that consumer protection regulation brings to them. Half (50%) of businesses believe that consumer protection regulations help to build and maintain public trust in their brands and products, which is crucial for long-term success. Additionally, 42% of businesses feel that these regulations protect companies with high standards from being undercut by competitors with lower standards or deceptive practices.

This emphasises the importance of balanced regulation, which to be effective needs to be created in partnership with businesses and regulators and must consider both implementation and enforcement. To this end the government, as set out in their industry strategy, is keen to understand how current regulations and the regulatory environment are impacting the economy.

The role of regulation in innovation and growth

In addition to boosting consumer confidence and supporting high standards, many businesses believe good consumer regulation can support innovation and growth, rather than being restrictive. Businesses are twice as likely to embrace the benefits of consumer protection regulations for innovation than view it as a barrier to innovation. A third of businesses said regulations allow businesses that invest in their products and services to secure a return (33%) compared to 15% that said it makes it harder for businesses to innovate. 

This sentiment reflects a broader consensus that the existing regulatory framework strikes a beneficial balance, with 70% of businesses believing that the level of consumer protection regulations in their sector is appropriate, with 14% saying too much and 15% too little. This view on the level of consumer regulations was fairly similar across business sizes. For example, amongst the 140 FTSE 350 companies we surveyed, a majority believe there is currently about the right amount (61%), with 21% saying too much and 18% too little. 

One FTSE 100 business representative stated,

“Regulation protects fundamental interests and rights and is balanced so as not to disincentivise innovation and investment.”

Another explained how although there is a challenge in ensuring the right balance of regulation, current levels are working well. 

“Difficult job to balance both sides in this issue but at present I think it’s about right with both consumer and supplier having a decent amount of protection.”

While some acknowledged room for refinement, many agreed that the existing framework provides a solid foundation for consumer protection. As one added,

“I believe current regulations, such as GDPR and Consumer Rights Act, strike a fair balance between protecting consumers and allowing businesses to innovate and thrive.”

Views on the level of consumer protection regulation in their sector

Summary

It is crucial that current and future consumer protection regulations strike the right balance of supporting consumers, businesses and economic growth. Rather than being viewed as an obstacle, good regulation can foster innovation while providing necessary consumer protection. Our research has shown the majority of businesses recognise the value of consumer policy and believe that current protections strike the right balance. 

Looking to the future, good consumer policy and enforcement can support our thriving clean energy and tech sectors, help our small businesses become the productive success stories of tomorrow, make sure that investment doesn’t leak out of our financial services industry to fraudsters, and ensure the benefits of growth can be shared more equitably across the country. Consumer policy should not be overlooked as a vital tool for governments to improve market efficiency and foster sustainable growth.

Methodology

The consumer figures are from a survey conducted by Yonder on behalf of Which? between 11th and 13th October. A sample of 2,086 UK adults was surveyed online and weighted to be nationally representative.

The business figures are from a survey conducted by YouGov on behalf of Which? between 30th September and 15th October. A sample of 1,000 senior decision makers and above in GB businesses of all sizes in the private sector was surveyed and weighted to be representative by number of employees and region.