Journal Article

How Effective Are Federally Mandated Information Disclosures?

Aug 30, 2016 | Arthur G. Fraas, Randall Lutter

Summary

Government agencies require information disclosure in several areas affecting consumers, but often without evaluating its effectiveness. We identify best practices for prospective and retrospective evaluations of mandatory information disclosures.

Key Findings

  • Agencies infrequently issue disclosure requirements based on scientifically valid, controlled studies of their effectiveness.
  • Case studies of a few instances where such analysis was conducted to evaluate performance provide an identified set of current best practices.
  • Reform of the current federal regulatory process to establish and review mandated disclosures would improve the effectiveness of information disclosure.