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Question
Explain any two points of importance of 'consumer protection' from the point of view of business and any two points from the point of view of consumers.
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Solution
Importance of consumer protection from the point of view of business:
1) Long-Term Interest: For any business, consumer satisfaction is essential. In today’s times, with increasing competition, consumer satisfaction has become all the more important. As the organisation takes care of the interests of consumers, it builds goodwill and reputation in the market. This, in turn, helps in increasing the sales and profits of the business.
2) Use of Resources: Any business survives on the basis of society. It uses the resources of society for its various production activities. It earns profits with the sale of these goods and services to society. Thus, the business must take care of the interest of society and supply goods and services which adhere to the overall interests and wellbeing of society.
Importance of consumer protection from the point of view of consumers:
1) Consumer Ignorance: In India, consumers are unaware of their rights and available reliefs, so it becomes important to educate them about the same.
2) Consumer Exploitation: In India, consumer organisations and NGOs are few and not that powerful, implying the need of protecting consumers
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