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Question
Explain the need for consumer protection.
Solution
Following are points which highlight the need for consumer protection :
Consumer Ignorance: In many cases, consumers remain ignorant about their rights or do not have adequate measures to differentiate between genuine and spurious products Therefore, they need suitable protection in the form of consumer protection.
Widespread Consumer Exploitation: In the present business environment, there is scope for widespread consumer exploitation through a variety of malpractices, some even unconceivable by consumers. This necessitates the protection of consumers.
Unorganized Consumers: Consumers are not organised like trade unions or trade associations that protect the interests of their members. They are unorganized and have no voice to convey their exploitation except through consumer protection measures.
Long-term Interest of Business: Consumer protection is quite relevant for the long-term interest of the business. The main focus of a business is on its consumers (the ultimate customers). Thus, serving the consumers by protecting their interests becomes the interest of the business. Any unethical practice erases all the positive effects of ethical practices.
Use of Social Resources: A business uses social resources of various types. Therefore, it is bound to serve society by using its resources through the adoption of fair trade practices that ensure consumer protection.
Social Responsibility: Social responsibility is a business objective along with other objectives. Since consumers are a part of society, consumer protection becomes an objective of a business. The business is required to balance various objectives.
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