Importance from business point of view:
(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.
Importance of Consumer Protection from the point of view of consumer is as follows:
(a) Consumer's Ignorance: In the right of widespread ignorance of consumers about their rights and reliefs available to them, it becomes necessary to educate them about the same so as to achieve consumer awareness.
(b) Unorganised Consumers: In India, consumers are not organised. Though we do have consumer organisation working in this direction, adequate consumer protection is required to provide power and rights to these organisations to protect and promote the interests of consumers.
(c) Widespread Exploitation of the Consumers: Unaware, ignorant consumers might be exploited by unscrupulous, exploitative and unfair trade practices like defective goods, adulteration, false and misleading advertising etc. Consumer protection provides safeguard to the consumers from such exploitation.