This submission is in response to proposed changes to the Victorian sex industry regulations, after an assessment in the form of a Regulatory Impact Statement (RIS) by Consumer Affairs, Victoria. Scarlet Alliance argues that key elements of the sex industry have been overlooked in the RIS. A key factor that has had not been taken into account is peer education. Consumer Affairs Victoria also incorrectly argues that sex workers within strict regulatory systems enjoy better sexual health than those outside regulations. This is found to be untrue when taking into consideration rates of STI's in South Australia and Western Australia (where sex work is illegal). Sex workers in illegal environments continue to show low rates of STI's, even though they are not subject to formal regulation.