Self-regulated professions in Canada should re-examine their rules to ensure they serve a public good and do not go too far in restricting competition, according to a new study released today by the Competition Bureau.

The study focuses on five professions: accountants, lawyers, optometrists, pharmacists and real estate agents, but the Bureau says that the principles and findings can be applied to any self-regulated profession.

It found that rules that limit advertising, set prices for services and restrict who can offer professional services may go further than necessary to protect the public interest. These rules can lead to higher prices, limit choice and restrict access to the type of information consumers need to make decisions, it added.

The Bureau reports that it uncovered numerous instances of rules that regulators should consider revising or removing to promote greater competition to serve consumers better and enhance productivity.

Examples include:

  • advertising regulations, particularly those that restrict comparative advertising;

    • suggested prices and rules regarding fee structures that can inhibit price competition;

  • limits on who can offer certain professional services, which lead to consumers paying higher prices or paying for more service than they really need;
  • and, uneven licensing requirements across the country that limit the number of professionals and restrict their ability to move where there is demand for their services.

    “We understand that regulation plays a legitimate role in protecting consumers and meeting public policy goals,” says Sheridan Scott, Commissioner of Competition. “However, not all the regulations we looked at appear necessary, and removing some of these restrictions could benefit consumers and the Canadian economy.”

    “The type of regulations the Bureau studied are present in most professions in Canada, and it is the Bureau’s hope that regulators in many professions will subject their by-laws, rules, codes of conduct and regulations to an analysis similar to that in this study,” it notes; adding that, in two years, it plans to assess how the five professions in the study have done in implementing the recommendations.