Consumer Protection is a very wide term. It includes providing information to the consumers about their Rights and Responsibilities and also helps in getting their Grievances Redressed and Protecting their Interest. The Concept of Consumer Protection is Beneficial not only for the Consumer, but also for the Businessmen. To Protect the Consumers against Unfair Trade Practices of the Producers and Sellers is called Consumer Protection .
Business needs Consumers as much as Consumers need Business. Therefore, Business should also join hands in Protecting Consumer’s Interest . It’s importance is highlighted by the following facts.
- Long Term Interest of Business : Long term interest of the business lies in the satisfaction of its consumer. It is a satisfied consumer who not only leads to repeat sale but also provides positive feedback to other consumer. In this way the number of customers for that firm goes up and the firm continues to live for a long time. Paying attention to the satisfaction of the consumers is nothing but consumer’s protection.
- Businessman Uses Society’s Resources: Every business uses various resources, e.g., material, machinery, human, capital, etc. All these resources supplied by society. From this point of view, it becomes the responsibility of business to provide better facilities to society. By doing this and through the medium of consumer protection business gets an opportunity to discharge its responsibility towards society.
- Social Responsibilities: It is the social responsibility of business to protect the interests of its owner and all other related constituents like – employees, consumers, suppliers, competitors, government, etc. Consumers happen to be the most important of all the related constituents. Therefore, more attention should be paid to the protection of their interests. Doing this is nothing but consumers protection. Therefore, business through the medium of consumer protection can discharge its social responsibility to a large extent.
- Moral / Ethical Justification: It is the moral responsibility of business to take care of the consumer’s interest. The business should keep away from the evils of adulteration, inferior quality, misleading advertisement, hoarding of goods, black – marketing, less weighing and measuring. By doing so they can discharge their moral responsibility and it can be said that business is helping the cause of consumer protection.
- Government Intervention: By ignoring Consumers Interest Business is almost inviting Government Intervention. Government Intervention may Spoil the image of Business. So every firm wants to avoid such situations . Such a situation can be avoided only if the consumers’ interest is taken care of. Doing so means taking care of consumers’ protection. Thus, by being a partner in protecting consumers’ interests government intervention can be avoided and reputation of the firm can also be maintained.