Consumer Protection

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Consumer protection has a special significance for businesses, it can be understood from the following points:

1. Long term Interest: It is in the long-term interest of the business to satisfy customers. When customers are satisfied business gets repeated sales and its customer base increases.
2. 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.
3. Social Responsibility: A businessman has responsibility towards various groups. Customer is one of the important groups because firms earn money by selling goods and services to them.
4. Government Intervention: If a businessman wants to avoid intervention of government then they should not involve in unfair trade practices. Firms should voluntarily serve the needs and interests of customers.
5. Moral Justification: It is a moral duty of every business firm to take care of customer’s interest. It must avoid all types of unscrupulous and unfair trade practices.

Consumer protection has a special significance for businesses, it can be understood from the following points:

1. Long term Interest: It is in the long-term interest of the business to satisfy customers. When customers are satisfied business gets repeated sales and its customer base increases.
2. 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.
3. Social Responsibility: A businessman has responsibility towards various groups. Customer is one of the important groups because firms earn money by selling goods and services to them.
4. Government Intervention: If a businessman wants to avoid intervention of government then they should not involve in unfair trade practices. Firms should voluntarily serve the needs and interests of customers.
5. Moral Justification: It is a moral duty of every business firm to take care of customer’s interest. It must avoid all types of unscrupulous and unfair trade practices.

The importance of consumer protection from the consumers’ point of view can be understood from the following points:

1. 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.
2. Unorganized Consumers: There is need to organize consumers in the form of consumer association who would take care of their interest.
3. Widespread 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.