In today’s economy, appropriate regulation is critically important for markets to function well, and every person is touched by regulation to varying degrees. When crafted and implemented with care, regulation should create a level playing field, foster innovation, and protect the interests of both consumers and businesses. But when the rules are rushed or poorly designed, they risk choking growth and business viability, discouraging investment, and harming the very people they’re meant to serve.
As the current Chair of the US Federal Reserve, Jerome Powell, has said, “More regulation is not the best answer to every problem”
Why Appropriate Regulation Matters
Markets and businesses thrive on trust and predictability; this includes those businesses supporting students pursue their life and career goals in tertiary education. Effective regulation ensures that all players, whether they be big or small, operate by the same rules. Achieving an effective regulatory model and implementation of it which builds confidence among both consumers and investors is critical.
When regulation is fit-for-purpose, clear standards for conduct, product safety, and competition are set, thereby reducing the risk of fraud and market manipulation. Regulation can also act as a catalyst for growth, encouraging responsible innovation and rewarding good actors.
The Cost of Getting It Wrong
But regulation is a double-edged sword, and more regulation is not always (perhaps rarely) the answer.
Winston Churchill said that “If you have ten thousand regulations you destroy all respect for the law.”
Does over-regulation lead to greater non-compliance and deliberate skirting of those regulations? Perhaps? Either way, it absolutely does more to damage the consumers and businesses and consumers seeking to participate with genuine intent in that market.
Poorly designed or hastily implemented rules are likely to stifle competition and innovation. Overly complex or ambiguous regulations create unnecessary red tape, increasing costs for businesses, especially smaller ones that lack the resources to navigate often unnecessary bureaucratic hurdles that are not nuanced to their circumstances. Worse, such regulations can distort markets, limit consumer choice, and drive-up prices.
They can even force legitimate businesses out of the market, leaving consumers with fewer, and often inferior options. This is a familiar story to many in the independent tertiary education sector.
The fallout isn’t limited to businesses. Consumers bear the brunt of higher prices, reduced availability of goods and services, and diminished trust in the marketplace. When regulation misses the mark, everyone loses.
The Case for Open, Transparent Engagement
So, how do we get regulation right? The answer lies in open and transparent engagement with the industries and markets affected. Policymakers must consult widely and transparently, listening to the concerns and insights from those on the front lines; businesses, industry bodies, consumer groups, and the public.
This is a collaborative approach that ensures regulation is established through the real-world experiences of those affected. Also, unintended consequences can better be anticipated, and regulatory interventions in the market can remain flexible enough to adapt to changing circumstances.
Transparency builds trust. Through open processes stakeholders are more likely to support and engage positively with new or revised regulations and regulatory bodies will be better equipped to identify and address concerns before they might become systemic.
Appropriate regulation is essential for healthy markets, but only when crafted with care and in partnership with those that are affected. The outcomes is an environment that supports growth, protects consumers, and keeps markets vibrant and fair.
Get it wrong, and everyone pays the price. Get it right, and everyone wins.
Felix Pirie is the CEO of the Independent Tertiary Education Council of Australia (ITECA).
The Koala thanks Felix and ITECA for permission to publish this piece, which first appeared in the ITECA Newsletter (7/7/25).
