What is regulatory experimentation?

Regulators are required to make decisions in the face of uncertainty. Regulators use regulatory experimentation to generate evidence and information that can be used in decision making to help reduce that uncertainty.

A regulatory experiment is a trial or test of a new product, service, approach or process designed to generate evidence or information that can inform the design or administration of a regulatory regime.

Regulatory experiments are unique in that they are specifically designed to support regulatory decision making.

Types of experiments that can help inform the development or amendment of regulations include testing one of the following:

• a proposed set of regulations for a limited number of products, in a limited area, or for a limited group of users
• whether a new product or innovation is covered in an existing regulatory regime, how existing regulations would apply, and whether new regulations are required
• an innovative approach or technology to inform regulators on the potential impacts on industry, regulation, and citizens.

The centre provides regulators with resources, advice, and expertise in the development of regulatory experiments and has supported a number of regulatory experiments to date including:

• Light sport aircraft

  Testing light sport aircraft to see whether they can be used effectively in a pilot training environment. This practice is not currently allowed under current regulations, requiring flexibility from the regulator to enable the experiment with identified flight schools. The regulator will test aircraft reliability and the impact on aircraft emissions and noise complaints in a flight training environment. The learnings will be used to inform any permanent regulatory changes. (Transport Canada)
• Digital credentials and wallets

  To increase the Government of Canada’s adoption of digital credentials and wallets, ISED has been testing different educational approaches to determine see which would best support stakeholder proficiency and knowledge of this technology. (Innovation, Science and Economic Development Canada)
• Supply chain transparency and labelling for chemicals in products

  Having information on the chemicals that are in the products Canadians buy and use, and the impacts on consumer health and the environment, has been identified as an important issue. This experiment includes engaging with industry, academia, citizens and others in developing, prioritizing, and testing innovative solutions to improve supply chain transparency and labelling for chemicals in products in Canada. This is being done through a series of workshops and interactive events in a policy lab format. (Environment and Climate Change Canada)