Question

Why are rules and regulations required in the marketplace? Illustrate with a few examples.

Answer 1

Individual consumers often find themselves in a weak position. The points mentioned below make one realise the importance of having rules and regulations to protect consumers in the marketplace.

• A very protracted battle was fought in courts against the cigarette manufacturing companies, to make them accept that their products were highly likely to cause cancer among its users.
• Huge companies have the capacity to manipulate the market, through false information passed on to the media. An international giant sold powder milk for babies in the market, claiming that it was better than mothers milk. After years of struggle, the company had to retract their false claims.
• Traders use faulty weights to cheat the customers.
• Additional charges on goods imposed by traders that were not mentioned earlier.

Some of the Rules – To be followed by Manufacturers

• While selling medicines, the packet should have ‘directions for proper use’, risks associated with the usage, side effects. This is to help consumers with the right information to keep them safe.
• While purchasing Garment products, the package should have information such as ‘Instruction for cleaning.’
• Manufacturers have to provide details on the packets of their products. Information that needs to be provided is the address of manufacturer, expiry date, date of manufacture, batch number, ingredients used, price.

Benefits of Rule to the Consumers

• A consumer can protest and complain against a trader, if a product is being sold at more than Market Retail Price (MRP) printed on the package of the product.
• If the goods purchased by the consumer are defective and are within the expiry period, the consumer can seek a replacement. If the expiry period was not printed then the manufacturer would not accept responsibility and would have blamed the trader.
• If expired medicines are sold in the market, then severe action can be taken against the seller.