PDF《consumers. 2》

b) a proportionate and deliverable means of addressing actual or potential detriment;

c) transparent in their aim and operation;

and d) likely to be beneficial for consumers, when taken as a whole.5 1.13. The FCA will generally consider factors that include: a) the potential scale of detriment in the market C issues involving products with a large customer base that may lead to widespread detriment are more likely to require product intervention;

b) the potential scale of detriment to individual customers C issues that may lead to high detriment for individual customers are more likely to require product intervention;

c) the social context C issues that may lead to detriment for particular groups of customers (such as, in particular, vulnerable customer groups) are more likely to require product intervention;

5 Note also the FCA'

s '

Principles of Good Regulation'

in Section 3B of the Bill.

3 d) the market context C market mechanisms such as information disclosure and competition do not always work to protect consumers;

and e) possible unintended consequences C whether the use of temporary product intervention rules or the timing of the intervention would in itself create undue risk of further consumer detriment (although this will not comprise a full Cost Benefit Analysis). 1.14. Examples of scenarios where temporary product intervention rules (or other product intervention rules) may be made include: a) products being sold outside their target market or being inappropriately targeted C for example, widespread promotion/selling to types of consumer for whom the product is unlikely to be suitable;

6 b) products that would be acceptable but for the inclusion or exclusion of particular features C for example, products have specific terms or conditions (or, alternatively, lack certain terms or conditions) which make them inappropriate for a significant number of consumers, or for specified types of consumer;

c) products where there is a significant incentive for inappropriate or indiscriminate targeting of consumers C for example, where products are highly profitable but only likely to be appropriate for a narrower section of the retail market;

d) markets where the competitive pressure alone will not address concerns about a product C for example where competition focuses on irrelevant features and/or exploits systematic consumer weaknesses such that market- based solutions will not address the problem;

e) markets where firms restrict their product range or access to their product range in ways designed to increase profitability by restricting consumer choice, reducing competition, or creating barriers to search, switching, or entry;

f) in some particularly serious cases, a product may be considered inherently flawed C for example, a product that offers such poor value or has such disadvantageous features that the majority of consumers, or specified types of consumer, are unlikely to benefit. 1.15. This means that, generally speaking, the FCA will consider making temporary product intervention rules (as opposed to other regulatory interventions) where particularl........