Call it, "Irregulation"

Do a quick review of some recent news stories.

In late March, four different airlines voluntarily cancelled more than 700 flights after the first phase of an FAA maintenance audit (see this story from KRON-TV). The news was disruptive enough that congress has started to ask questions about why issues had not been detected earlier (see this story from the Minneapolis Star Tribune).

Meanwhile, controversy grows about the use of direct-to-consumer advertising by drug companies (see this update from the NY Times). A two-year drug trial questions the effectiveness of two cholesterol control drugs (story from UPI). And it seems like there are frequent recalls of foods and medicines—many of which were previously approved by the FDA (see the agency’s own recall records page.)

Lead paint on imported toys. Sub-prime lending practices which contributed to a destabilized credit market. A bridge collapses in Minnesota (after passing an inspection just a couple of years before).

I could go on… but let me assume the point has been made. Industries we thought to be regulated… are proving to still have significant irregularities.

Implications: The spate of recent news reports about recalls and regulatory missteps could intensify the consumer’s desire to buy from trusted providers, and accelerate their use of online tools to scrutinize and research the products and services they buy. (Example: see Recalls.gov.)

We should not be surprised when customers demand increasing transparency in the way products are designed, produced, and tested before going to market. Companies who provide some type of independent certification, research, or other assurance of quality may find such validations to have significant gravitational pull… for consumers who might increasingly feel like they must fend for themselves in the quest for products that are safe for their family.

Mike Anderson