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Question
Answer the following question.
What do you mean by Consumer protection? Explain its importance.
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Solution
Consumer protection refers to making consumers aware of their rights and responsibilities and helping them in seeking redressal for their grievances and complaints. Consumer protection is of prime importance to both consumers and businesses. The following points highlight the significance of consumer protection:
i. Consumer ignorance - Consumers, at large, are ignorant of their rights and responsibilities and various redressal mechanisms available to them. Therefore, it is important to educate them and make them aware of the same for their welfare.
ii. Consumer exploitation - Consumers often face exploitation in the form of unfair trade practices such as black marketing, hoarding and adulteration. Therefore, they should be made aware of various means by which they can protect themselves against such forms of exploitation.
iii. Unorganised consumer groups - To protect their interests, consumers should create consumer groups and set up organisations that work towards their welfare and protection.
iv. Lack of information - In the seller dominant market, the consumer fails to obtain correct and reliable information about the products and services available in the market. This enhances the probability of consumer exploitation and thus increases the need for consumer awareness.
v. General tendency of consumers - Generally, consumers go for products that are available at cheap rates or discounts. This increases the chance of their exploitation.
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