Consumer protection refers to protecting the interest of consumers. In this post, we will be learning about the concept and importance of consumer protection.
Let’s Learn consumer protection in detail.
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Concept of Consumer Protection
Consumers are considered to be the kingpin in the market. The producer should produce goods keeping in mind the requirement of the consumers and satisfy the consumer in the best possible way.
But it is observed that this obligation is neglected by some businessman and they are involved in unfair practices such as the supply of sub-standard quality products, adulteration, etc.
Hence, the need arose for consumer protection.
Importance of Consumer Protection
Consumer protection includes educating consumers, about their rights and responsibilities. Also helping them in getting their grievances redressed.
We will understand the importance of consumer protection from consumers as well as producers point of view:
Importance of Consumer Protection from Consumer’s view
1. Consumer Ignorance
Consumer protection give information to the ignorant customers regarding rights and remedies available to them.
Consumer Protection spread awareness so that consumers can know about the various redressed agencies where they can approach to protect their interests.
2. Unorganised Consumers
Consumer needs to be organised in the form of consumer organization which would take care of their interest.
Though, in India, we do have consumer organization which is working in this direction to provide protection to the consumer.
3. Widespread Exploitation of Consumers
Consumers might be exploited by exploitative and unfair trade practices like the defective and unsafe products, adulteration, hoarding, black marketing, etc.
Consumer needs protection against such malpractices of the seller.
Importance of Consumer Protection from Business’s View
1. Long-term interest of Business
Businesses realised that it is in their interest to satisfy their customers.
Satisfied and happy customers not only lead to repeat sales but also new customer and they spread the word of mouth. Thus, it helps in increasing the customer base.
Therefore, a business firm should aim at the long-term profit maximization through customer satisfaction.
2. Business use of society resources
Business organization use resources which belong to the society. They have a responsibility to supply such products and give such services which are in the public interest.
3. Social Responsibility
A business has a social responsibility towards various interest groups. The business organization makes money by selling goods and providing services to the consumer.
Therefore, consumers form an important group among the many stakeholders of the business, and like other stakeholder’s their interest has to be well-taken care of.
4. Moral Justification
It is the moral duty of any business to take care of consumer’s interests and avoid any form of their exploitation.
Therefore, a business must avoid exploitative and unfair trade practices like defective and unsafe products, adulteration, hoarding, black marketing, etc.
5. Government Intervention
A business engaging in any form of exploitative trade practices would invite Government intervention or action. This can hamper the image of the company.
Hence, it is advisable that business organizations voluntarily resort to such practices where the customer needs and interest will be taken care of.
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