Explain any four needs of consumer protection. - Organisation of Commerce and Management

Long Answer

Explain any four needs of consumer protection.

State the need for consumer protection.



In the modern competitive market, the consumer is regarded as the 'King of Market' hence consumer protection is required due to the following reasons:

  1. The need for participation of consumers:
    It is noted that business organizations make decisions that affect consumers' interests without consulting the consumer or their organizations.
    Only a strong consumer organization can pressurise business organizations to allow consumer participation in the decision-making process.
  2. Lack of information:
    It is very difficult to establish direct contact between consumers and manufacturers because consumers live in a dynamic and complex world and they are widely scattered. Today's markets are full of domestic as well as imported products therefore it is very difficult to get correct and reliable information about the product before they purchase.
  3. Ignorance:
    The ignorance of consumers is the main cause of exploitation by the business. Consumers in India are mostly ignorant about their rights, market conditions, price levels, and product details. A system is required to protect them from business malpractices.
  4. Unorganized Consumers:
    Consumers are widely scattered and are not organized, On the other hand, sellers are in a better position than consumers and they are powerful. Consumers are under the influence of businessmen. An individual consumer cannot fight against these powerful sellers.
  5. Spurious Goods:
    There is an increasing supply of duplicate products. It is not possible for an ordinary consumer to distinguish between a genuine product and its imitation. It is necessary to protect consumers from such exploitation by ensuring compliance with prescribed norms of quality and safety standards.
  6. Misleading Advertising:
    Some businessmen give misleading information about the quality, safety, and utility of products. Consumers are misled by misleading advertisements and do not know the real quality of advertised goods. A mechanism is needed to prevent misleading advertisements.
  7. Malpractices of Businessmen:
    Fraudulent, unethical, and monopolistic trade practices by businessmen lead to the exploitation of consumers. Many times consumers get defective, inferior, and substandard goods and services. Certain measures are required to protect consumers against such malpractices.
  8. Trusteeship:
    According to Gandhian, philosophy businessmen are trustees of the society's wealth. Therefore, they should use this wealth for the benefit of people.
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Chapter 7: Consumer Protection - Exercise [Page 149]

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