About Consumer Protection
Consumer protection is one of the main prior areas among the awareness program. With the advent of education, the customers have become aware of their rights and duties as a customer. Knowing the rights products to buy and duties to fulfil the consumers cannot be outwitted now by the mean shopkeepers.
The awareness program is mandatory to be in a wide scale fashion. In our study we have acknowledged the importance of this section, and thus have included the discussion of this chapter in our routine.
Introduction of Consumer Protection
Consumer protection is the practice that is initiated for safeguarding the buyers of goods and services, and the public, against the unfair practices in the marketplace. Consumer protection measures are generally established by the legal force. Such laws are procedures to prevent the businesses from engaging in fraudulent activities or other unfair trade practices. The businesses engage in this type of activities to gain an upper hand in the competitive market and also to direct the customers falsely. The government too has initiated enquiries about the products as are sold by the business men to the local customers, the government officials usually keep a track and regulate to protect the public from the supply of hazardous products.
Consumer Law ensures a fair marketplace and thereby ultimately protects the individual consumer in their common transactions.
A student needs to understand the consumer protection law, they should be shrewd in legal research, and should know how to interpret statutory legal techniques.
Consumer protection is connected with the idea of consumer rights and about the formation of consumer organizations, that helps the consumers to make better choices in the marketplace and pursue complaints against the fraudulent businesses. Entities that promote consumer protection also include government organizations, they advocate for consumer protection laws and help to ensure their total enforcement.
An optimal level of intervention of consumer protection is adequate in the market else interfering beyond this would become negative eventually
Importance of Consumer Protection
The consumer related protection laws that are made by the government have many positive effects in this matter. Consumers should always be vigilant about their rights and duties and know the importance of their rights as well. In that connection itself, we will do a detailed study about the importance we gain from this legal protection.
Consumer protection makes markets work for the consumers and even for the business.
Consumers
Consumers are required to obtain accurate and unbiased information about the products and services they purchase. This enables them to make the best choices based on their interests and knowledge which prevents them from being misinformed or misled by the business personals. Consumer protection policies, laws and regulations thereby helps increase consumer awareness and welfare by ensuring that businesses can be held accountable if found guilty by the consumers.
Businesses
Businesses that are known to treat consumers fairly will gain a good reputation known as goodwill in the market. This increases their profitability and competitiveness in terms of reputation as well, which will also lead to economic growth in the long run. Consumer protection policies, laws and regulations guarantee that businesses are regulated properly.
Economic Growth and Competitiveness
Consumer protection contributes to dynamic and effective markets for businesses to grow. Businesses now cannot use fraudulent methods to gain competition. Consumer awareness makes the business adopt fair policies and this drives innovation and economic development as the businesses are required to be maintained in fair prices and good quality of their products and services.
FAQs on Importance of Consumer Protection in Business
1. What are Unfair Trade Practices?
Ans. An unfair trade practice means a trade practice which, for the purpose of promoting the sale, uses or supply of goods and services adopts unfair method, or deceptive trade practice. Unfair business practices engage fraud, misrepresentation, and oppressive acts or practices by business, often against the consumers, and are prohibited by the law.
2. What is Consumer Protection Law?
Ans. Consumer protection law is the series of laws that intend to protect the consumers by regulating the affairs they engage in. This area of law is highlighted by regulatory practices, utilizing statutes and regulations as the primary method of protection.
3. Name a Few Consumer Protection Organizations.
Ans. The U.S. Food and Drug Administration (FDA) is the “the world's premier consumer protection regulatory agency.” Other examples of consumer protection are Federal Trade Commission, the Consumer Product Safety Commission. In India there are - Akhil Bhartiya Grahak Panchayat, Consumer Guidance Society of India, All India Consumer Protection Organization, The Consumers Eye India, United India Consumer's Association.
4. Who is a Consumer?
Ans. A consumer is a person or a group who intends to order or uses the purchased goods, products, or services primarily for their personal, social, family, household and for other similar needs, their buying is not related to any business or for resale purposes.
