मराठी
Tamil Nadu Board of Secondary EducationHSC Commerce Class 12

Importance of Consumer Protection

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Topics

Estimated time: 8 minutes
CBSE: Class 12

Meaning

  • Consumer protection safeguards consumer interests and protects consumers from unethical business practices.
  • Unethical practices include: adulteration, counterfeit and sub-standard goods, duplicate goods, faulty weights, black marketing and hoarding, overcharging above MRP, defective goods, misleading advertisements, and inferior services.
CBSE: Class 12

Need for Consumer Protection

  • Physical safety.
  • Access to information.
  • Corporate social responsibility.
  • Consumer satisfaction.
  • Social justice and trusteeship.
  • Business survival and growth.
CBSE: Class 12

Importance from Consumers’ Point of View

  • Consumer Ignorance: Consumers do not know their rights, so they must be educated.
  • Unorganised Consumers: Consumers are not strongly organised, so they need protection.
  • Widespread Exploitation of Consumers: Consumers face defective goods, adulteration, false ads, hoarding and black‑marketing.
CBSE: Class 12

Importance from Point of View of Business

  • Long-term Interest of Business: Satisfied customers give repeat sales, good feedback and long‑term profit.
  • Business Uses Society's Resources: Business uses society’s resources, so it must act in public interest.
  • Social Responsibility: Consumers are an important stakeholder group, so their interests must be cared for.
  • Moral Justification: Business has a moral duty to avoid exploitation and unfair practices.
  • Government Intervention: Exploitative practices invite government action and harm the company’s image.
CBSE: Class 12

Key Points: Importance of Consumer Protection

  • Consumer protection exists to shield consumers from unethical business practices like adulteration, duplicate goods, overcharging, and misleading advertisements.
  • Need for protection spans physical safety, information access, CSR, consumer satisfaction, social justice, and business survival.
  • Key measures: consumer education, grievance redressal, and consumer associations.
  • From consumers' side: ignorance, lack of organisation, and exploitation are central concerns.
  • From business's side: long-term interest, responsible use of resources, social responsibility, and avoiding government intervention justify consumer protection.
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