Explain the importance of consumer protection from the point of view of a business.
From the Point of View of Business: Business needs consumers as much as consumers need business. Therefore, business should also join hands in protecting consumers’ interest. Its importance is highlighted by the following facts:
(i) Long term interest of Business: Every business wants to enjoy long existence. This is possible only when business firms provide absolute satisfaction to the consumers. A firm that succeeds in satisfying the consumers, the consumers themselves turn to such a firm for buying their products time and again and they tell others also about their satisfaction. In this way, the number of customers for that firm goes up and the firm continues to live for a long time. Paying attention to the satisfaction of the consumers is nothing but consumer protection.
(ii) Business Uses Society’s Resources: Every business uses various resources, e.g., material, machinery, human, capital, etc. All these resources are supplied by society. From this point of view, it becomes the responsibility of business to provide better facilities to society. By doing this and through the medium of consumer protection business gets an opportunity to discharge its responsibility towards society.
(iii) Government Intervention: By ignoring consumers’ interest, business is almost inviting government intervention. Government intervention in defence of consumers’ interest is certainly a set back for any firm. This is why every firm wants to avoid such a situation. Such a situation can be avoided only if the consumers’ interest is taken care of. Doing so means taking care of consumers’ protection.
