Giving any six points, explain the importance of consumer protection in India.
Explain, in brief, any six reasons as to why consumer protection is needed in India.
What is the importance of consumer protection from the point of view of a consumer and a business?

(A) From the Consumers’ Point of view: The importance of consumers’ protection from the point of view of the consumers can be made clear with the help of the following points:

(i) Consumers’ Ignorance: Generally, the consumers are not aware of their rights. It is only because of this ignorance that they cannot raise their voice against their exploitation rampart in the market. They bear this exploitation ungrudgingly thinking it as a part of the market. Hence, they remain inactive in this respect. Therefore, it has become necessary in public interest that they should be educated about their rights so that they become activated.

(ii) Unorganised Consumers: Consumers are unorganised and this fact alone highlights the importance of consumers’ protection. A single consumer raising his voice against exploitation is not as effective as the voice of an organised consumers’ body can be. So far the consumers have not shown such an attitude that they should raise their voice in an organised manner. Consumers’ protection encourages the consumers to organise themselves.

(iii) Widespread Exploitation of Consumers: These days consumers are being exploited on a large scale. Following are some of the examples of their exploitation:

(a) Adulteration in consumers’ products.

(b) Inferior quality of goods and services.

(c) Misleading advertisement.

Consumers’ protection is absolutely necessary in order to get rid of such exploitation.

(B) From the Point of View of Business: Business needs consumers as much as consumers need business. Therefore, business should also join hands in protecting consumers’ interest. Its importance is highlighted by the following facts:

(i) Long term interest of Business: Every business wants to enjoy long existence. This is possible only when business firms provide absolute satisfaction to the consumers. A firm that succeeds in satisfying the consumers, the consumers themselves turn to such a firm for buying their products time and again and they tell others also about their satisfaction. 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 protection.

(ii) Business Uses Society’s Resources: Every business uses various resources, e.g., material, machinery, human, capital, etc. All these resources are 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.

(iii) Government Intervention: By ignoring consumers’ interest, business is almost inviting government intervention. Government intervention in defence of consumers’ interest is certainly a set back for any firm. This is why every firm wants to avoid such a situation. Such a situation can be avoided only if the consumers’ interest is taken care of. Doing so means taking care of consumers’ protection.


Why consumer protection is important for consumers? Give any one reason.

Because it removes the ‘Consumer Ignorance’.


Why consumer protection is important for a businessman? Give any one reason.

It helps long existence of the business through consumer satisfaction.


Which Act of Consumer Protection provides for the formation of ‘Consumer Protection Councils’ in every district and the State of the country?

The Consumer Protection Act, 1986.


What is the purpose of enacting the Consumer Protection Act, 1986?

Its purpose is to protect the consumers against the unfair practices of the producers and sellers.