Question

State any three points of importance of Consumer Protection for business?

Answer 1

Importance of 'Consumer Protection' from the point of view of business:

(a) Long-term interest of business: Long-term interest of a business lies in the satisfaction of its customers that leads to repeat sales and attracts other customers.

(b) Business uses society's resources: As a business uses social resources, it is bound to serve the society by using its resources through adoption of fair trade practices which ensures consumer protection.

(c) Social responsibility: Since consumers are a part of society, consumer protection is the part of its social responsibility to fulfill its social objective.

(d) Moral justification: Business ethics advocates adoption of moral principles in conducting business affairs. Then a business is required to adopt consumer protection as its moral duty.

(e) Government Intervention: To avoid government intervention in the business activities due to malpractices, a business should take government intervention as the first priority of protection.