Introduction and Importance of Consumer protection

CONCEPT & MEANING

Protecting consumers from unfair trade practices, adopted by the producers and sellers of goods and services is termed consumer protection. It not only includes educating consumers about their rights and responsibilities but also helps in getting their grievances redressed.

IMPORTANCE OF CONSUMER PROTECTION

From the Consumer’s point of view

1. Innocent consumer
   • Widespread ignorance About rights and relief’s available  to it and it
   • It has become necessary to educate them to achieve consumer awareness.
2. Consumers Are Unorganized
   • Consumers need to be organized in the form of consumer organizations to take care of their interests
   • In India, consumer organizations are working to protect and promote the interests of consumers.
3. Exploitation Of Consumers
   • Consumers are exploited by unfair trade false and misleading advertising, hoarding, black marketing, etc.
   • Consumers need protection against such malpractices of the sellers

Business Point of View:

1. Social responsibility
   • A business has social responsibilities towards various interest groups. Consumers form an important group among the many stakeholders of business and like other stakeholders; their interest has to be well taken care of.
2. Moral Justification:

• It is the moral duty of any business to take care of consumer‘s interests and avoid any form of their exploitation. 
• A business must avoid unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing, etc.

3. Intervention of  Government:
   • Businesses involved in any exploitative trade practices would invite the government
   • Can damage the image of the company.
4. Long-term Interest of Business:

• It is in the long-term interest of business to satisfy their customers. 
• This leads to repeat sales and provides good feedback to prospective customers and thus, helps in increasing the customer base of business. 
• It leads to long-term profit maximization through customer satisfaction

5. Entrepreneur uses Society’s Resources:
   • Business organizations use resources that belong to society. 
   • They, thus, have a responsibility to supply such products and render such services which are in the public interest and would not impair public confidence in them.