Question

Give two reasons which indicate the need for protection of consumers.

Explain why it is necessary to protect consumer.

Why is protection of consumers necessary?

Answer 1

Consumers need protection due to the following reasons:

1. Illiteracy and ignorance: Consumers in India are largely illiterate and ignorant. Individuals lack an understanding of their rights. A structure is necessary to safeguard people against unethical businessmen.
2. Unorganised consumers: In India, consumers are fragmented and not united. They are at the mercy of businesspeople. In contrast, manufacturers and traders are well-organised and powerful.
3. Spurious goods: The supply of duplicate products is expanding. Consumers struggle to discern between genuine and fake products. He pays the money for the original, but receives a subpar product. It's crucial to protect customers from such abuses.
4. Deceptive advertising: Some businesses provide inaccurate information about product quality, safety, and usability. False advertising misleads consumers about the true quality of marketed items. A method is necessary to avoid misleading marketing. 
5. Malpractices of businessmen: Business malpractices, including fraudulent, unethical, and monopolistic actions, can abuse consumers. Consumers frequently receive damaged, inferior, or poor items and inadequate service. 
   Certain safeguards are essential to protect customers from such malpractices. Greedy businesses engage in criminal tactics such as adulteration, boarding, and black marketing.
6. Freedom of enterprise: Business owners must prioritise customer happiness to achieve long-term survival and growth. If a firm fails to protect the interests of its customers. Government intervention and regulations will increase to prevent unfair trade practices.
   Thus, customers require protection from the following:
   1. Unsafe and harmful products
   2. Unfair trade practices
   3. False advertising
   4. Abuse of monopoly
   5. Environmental pollution