Question

Explain any four points of importance of consumer protection from the business point of view

Answer 1

Businesses must not only be thinking of profit maximisation but also ways to provide importance to customer protection and their satisfaction.

Following are some points that highlight the importance of consumer protection from the point of view of the business.

1. For the long term value of the business: By providing importance to consumer protection the business helps in making consumers happy and a delighted customer is loyal to the business. It ensures a long relationship and repeat purchases.

Not just that, a happy customer will do promotion for the business by referring other customers that bring more revenue for the business.

1. Businesses use resources of the society: Businesses use resources of the society such as manpower, therefore it is necessary for them to give back to society by having the moral responsibility to provide the best products and services to the society.
2. Moral duty: It is the duty of the business to protect consumers against unfair trade practices like defective products, adulterated foods and misleading advertisements.
3. Government Intervention: By indulging in unfair trade practices, there is a risk of businesses getting their reputation damaged and also legal action taken by the government that has made rules for protecting the rights of its citizens against such practices.

Therefore a business must give importance to consumer protection by not indulging in unfair trade practices