Question
What is the concept of consumer protection? Give importance of consumer protection.
Solution
Meaning: Consumer protection refers to protecting the consumer against anti-consumer trade practices by the producers or sellers.
Importance of Consumer Protection:
From Consumer point of view:
- Consumer Ignorance: Most of the consumers are not aware of their rights and relief available to them. It is, therefore, necessary to educate them and create awareness among them.
- Unorganized Consumers: There is need to organize consumers in the form of consumer association who would take care of their interest.
- Wide-spread exploitation of Consumers: Unscrupulous and unfair trade practices, such as defective and unsafe products, hoarding and black marketing etc. are widespread. Consumers require protection against such malpractices.
From Business Point of view:
- Long-term Interest: It is in the long-term interest of the business to satisfy customers. When customers are satisfied business gets repeat sales and its customer base increases.
- Use of society’s resources: Business firms use resources of the society. Therefore they are under an obligation to supply products and services which are in public interest.
- Social Responsibility: A businessman has a responsibility towards various groups. Customer is one of the important groups because firms earn money by selling goods and services to them.
