Analyse with three suitable examples why rules and regulations are required for the protection of consumers in the market place.
OR
Why are rules and regulations required for the protection of consumers interest in the market place? Explain two reasons.
Why are rules and regulations required for the protection of consumers interest in the market place?
THE consumers often fund themselves in a weak position as the seller always tries to shift the responsibility on the consumer. Therefore, rules and regulations are required for the protection of the consumers in the market place.
- Rules and regulations are necessary to prevent unfair trade practices such as over changing selling commodities in smaller quantities than shown on the package, hoarding, black marketing, adulteration of food and charging more than the actual price, weighing less, selling defective goods etc. Rules and regulations give support to consumers.
- Markets do not work in fair manner when producers are few and powerful whereas, consumers purchase in small amount and are scattered.
- There was no authority or organisation where a consumer could lodge a complaint. Therefore, rules and regulations are required to protect consumer’s interest.