If consumers are asked to make greater sacrifices than industry, the country is going to have the greatest shortage of all consumers.
Protecting consumers from unfair trade practices, adopted by the producers and sellers of goods and services is termed as consumer protection. It not only includes educating consumers about their rights and responsibilities, but also helps in getting their grievances redressed.
Importance of Consumer Protection
(from Consumer’s point of view)
1. Consumers’ Ignorance : Majority of consumers are not aware of their rights and reliefs available to them as a result of which they are exploited. In order to save consumers from exploitation, consumer protection is needed.
2. Unorganised Consumers : In India consumers are still unorganised and there is lack of consumer organisations also, thus consumer protection is required.
3. Widespread Exploitation of Consumers : Consumers are exploited on large scale by means of various unfair trade practices and consumer protection is required to protect them from exploitation.
Importance of Consumer Protection
(from the point of view of Business)
1. Long term Business Interest : It is always in the interest of the business to keep its customer satisfied. Global competition could be won only after satisfying customers. Satisfied customers lead to repeat sales and help in increasing customer base of business.
2. Moral Justification : It is the moral duty of any business to take care of consumer interest & avoid any form of their exploitation & unfair trade practices like defective & unsafe products, adulteration, false and misleading advertising, hoardings, black marketing etc.
3. Business uses resources of society: Every business uses the resources of the society and thus it is their responsibility to work in the interest of the society.
4. Social Responsibility : A business has social responsibilities towards various groups like owners, workers, government, customers etc. Thus, customers should be provided qualitative goods at reasonable prices.
5. Government Intervention : If a business engages in any form of unfair trade practices then government takes action against it, which adversely affects its goodwill.
