What is needed is competition across the board. A lot is said about competition in the private sector, and the need for things like anti-trust laws, but one huge flaw is that our present regulatory system is not competitive at all. A single government regulatory agency has no real consistent oversight for the most part, and abuses are common.

I would like to see regulation stop being so much a government program as a business. Small niches, like Consumers Union, do this successfully. Why not on a larger scale?

Imagine private consumer protection companies, and imagine enough of them that they are competitive with each other. There were private associations for some industries that did regulation prior to government picking up the job, but in a lot of cases there was only one for each industry, and no real oversight.

You need the competition.

Like Underwriters Labs, the best of such groups could offer certification for products at a fee. The fee would cover costs of testing and research, along with profits. A product certified by the most reputable watchdog company would have an advantage in the market. Some products may find it good P.R. to be certified by more than one, although that would be more costly.

Under those circumstances, self-interest is directed in the proper channels. Such private watchdog groups would not only have an incentive to do a good job, and make more money, but more importantly would also have a large incentive in catching its competitors doing a bad job. Only one proven bribe or bad call would probably wreck such a competitor and leave more market for the rest.

Legally-mandated monopolies should be treated with suspicion in all economic fields, including regulation.