It not only includes educating consumers about their rights and responsibilities, but also helps in getting their grievances redressed. The historical aspect implies that the concept of consumer took shape when the market economy evolved with great strides. Importance of Consumer Protection Act. (2) Provide Market Information: Majority of the consumers have no information about quality, type, price and other marketing facilities. World Consumer Rights Day 2020 Celebration : The consumer movement marks 15th March with World Consumer Rights Day every year, as a means of raising global awareness about consumer rights and needs. It is irrefutable that, to a considerable extent, legal and non-legal actions are effective in administering justice for consumers. The importance of consumer Legal Protection. by the producers on the origin of tastes, likings, preferences etc. Trading became exceedingly fierce, and the pressure of traders on the consumer began to increase at the same speed. Inspite of importance of consumers they may be the victims of immoral businessmen. So, … CONSUMER PROTECTION It is the need to protect consumers against exploitative and unfair trade practices like adulteration and false advertising of the sellers. Consumer protection provides safeguard to consumers from such exploitation. (4) Avoiding Monopoly: Consumer Protection is very important in terms of avoiding monopoly. Consumer Protection has a broad program. Consumer protection is needed because of following: 1. Ignorant consumers are given information relating to consumer rights and remedies. They are not well organized. Let us first talk about the Importance of consumer protection act 1986-From Consumer’s Point of View; From Business Point of view; Now when I talk about the importance from consumer point of view, some of the points are highlighted below. Businessmen cannot survive for a long time by ignoring the interest of consumer. The producer should produce good keep in mind the requirements of consumers and satisfy the consumer. That call is also taken up by many other international organisations, including the ADB. And moreover, the right granted to consumers under consumer protection laws in India. Importance from consumer’s point of view . The 2019 Act introduces a new explanation to the term Consumer through Section 2(7) of the Act. Federal and state consumer protection laws have typically focused narrowly on consumer welfare and are directed at misleading or confusing information about products and services. The Consumer Protection Laws in India received a significant boost after the introduction of the Consumer Protection Act of 1986. What are the issues in Consumer Protection? The COPRA, 1986 was a result of intense bargaining for the right of consumers all over the world. The business activities are revolved around Consumers only. Importance of Consumer Protection: (1) To Organize Consumers: Indian consumers are scattered over a wide geographical area. The Consumer Protection Laws in India received a significant boost after the introduction of the Consumer Protection Act of 1986. Importance of Consumer Protection : 1. They have a low power and businessmen exploit consumers. With the advent of the industrial revolution, there are now a slew of new products flooding the market. Importance Of Consumer Protection. From the Point of View of Business: Business needs consumers as much as consumers need business. Importance of Consumer protection from Business Point of view. Business Studies Class XII Consumer Protection Importance of Consumer Protection Lesson Progress 0% Complete Consumer Protection has a wide agenda. Class: F.Y.B.Com Teacher: Mr. Zagare G. B. 2.1 The General Principles for Financial Consumer Protection KSA 2.2 Consumer Responsibilities PART 3: OUR KEY COMMITMENTS 3.1 Terms and Conditions 3.2 Fees, Charges and Pricing 3.3 Data Protection and Confidentiality 3.4 Advertising and Marketing Communications 3.5 Account Opening 3.6 Account Switching 3.7 Cards 3.8 Internet Banking Important highlights of the Consumer Protection Act, 2019 are as follows:- 1. (3) Importance of Physical Safety: Indian markets are over flooded with products. The historical aspect implies that the consumers’ concept took shape when the market economy evolved with great strides. Consumer protection is a group of laws and organisations that are designed to ensure the rights of consumers. In honour of the 40th anniversary of Finnish consumer protection, we listed items where consumer protection has improved the position of consumers or made their everyday lives easier. All these contracts refer to the provisions governing bank loans or loan contracts. Importance Of Consumer Protection. This may endanger their life and due to this a consumer needs to be protected. The following factors make consumer protection important. Consumer protection safe guard, the … Importance of Consumer Protection: Consumer Point of View: To shape Consumers- Indian customers are not well-organised, and vendors exploit them easily. But it is observed that this application is neglected by some businessman and they are involved in the unfair practices so there is a need for consumer protection. This ensures that consumer get quality products and services without being overcharged by the vendors. Show More. of the consumers. Many … Consumer want protection against deceptive and unfair trade and market practices. Consumer protection law is essential to local and regional development, as well as consumer contracts. Trading became exceedingly fierce, and traders’ pressure on the consumer increased at the same speed. 706 Words 3 Pages. Undoubtedly, consumer protection laws and policies are important for the … Importance Of Consumer Protection Act 1986 1911 Words | 8 Pages. Topic: Importance of Consumer Protection Subject: Consumer Protection & Business Ethics. There are very few consumer organizations that are working to protect the interests of consumers. Consumer protection policies play an important role in the protection of the consumers from the poor services, misleading advertisements and hazardous goods that present in the situation. 2. Physical Safety- Some products are adulterated and can hamper consumer health. Consumer protection laws work to protect you against improper business practices. Consumer Ignorance: Consumer Protection Act 1986 provides information to ignorant consumers regarding their rights and duties. 1199 Words 5 Pages. Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. 13 Indeed, the development of these laws focused on prohibiting the dissemination of information that was misleading or could create a likelihood of confusion. Few people realise that this important piece of legislation has an impact on many of our everyday activities. Redressel agencies support the consumer who need assistance. The COPRA, 1986 as a result of intense bargaining for the right of consumers all over the world. Impart Market Information- Most of the consumer is clueless, and have no information about the product they are buying and this might cause them losses. World Consumer Rights Day 2020. The 2012 G20 Leaders Meeting in Los Cabos, Mexico, underscored the importance of financial consumer protection. The importance of consumer legal protection consumer protection is one of the areas that received development around the second half of the 20th century. We need physical protection of the consumer, for example protection against products that are unsafe or dangerous to his health and welfare. Such laws are intended to prevent businesses from engaging in fraud or specified unfair practices in order to gain an advantage over competitors or to mislead consumers. if there is shortage of goods then the buyer will have to buy a product at the price quoted by the seller. It not only includes educating customers about their rights and responsibilities but also helps in getting their grievances redressed. Educates consumers about their rights and responsibilities Such consumer protection organizations provides adequate Consumers protection is needed against all types of pollution so that they can enjoy a … ADVERTISEMENTS: 2. Importance of Consumer Protection. Consumer protection is one of the areas that received development around the second half of the 20th century. Consumer Ignorance: Consumer protection act provides information to ignorant customers regarding the rights and remedies available to them. Explain the importance of consumer protection from the point of view of a business. Seller dominant market: If the market is dominated by sellers then the consumer’s choice as well as his welfare gets the last preference.All the transactions are finalised in favour of sellers, middlemen and manufacturers, e.g. Large number of consumers are exploited by manufacturers. Central Consumer Protection Authority (CCPA): The Act seeks the creation of CCPA to address the issue of false and misleading advertisement which are prejudice to the interest of … In this article, the author will discuss important concepts. Do your due diligence in research so that you know when you are being treated unfairly. They have to give due importance to consumer if they want to prosper in competitive market. The majority businesses are known to be honest and trustworthy for the goods they sell and the services they offer, but some business are not honest hence consumers are not treated fairly and justly. Consumer protection provides following benefits to businessmen: Importance of consumer protection. The Consumer Protection Act, 1986 is the most important legislation enacted to provide for effective safeguards to consumers against various types of exploitations and unfair dealings, relying on mainly compensatory rather than a punitive or preventive approach. Businessmen cannot survive for a long time by ignoring the interest of the consumer. Protection the interest of consumers is very important but it depends upon the views: 1. It is also important to note that the Consumer Protection Act 2019 has expanded the definition of the term ‘Consumer’ in order to include individuals who engage in offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing. Here we need consumer protection. They provide credit protection, debt collection protection, identity theft protection, and bankruptcy and reorganization protection. There is a great importance of a consumer protection law. The Consumer Protection Act came into force and the Consumer Ombudsman started working in autumn 1978. Importance of consumer legal protection. Consumer Protection Act: Consumer Protection Act In India 1450 Words | 6 Pages. The products may be adulterated and maybe health hazardous. They are informed and ununited individuals who are often exploited by sellers. 1. They need to be protected from the unjust and unethical practices of the producers and traders. Consumer Ignorance:- consumer protection provides Information to ignorant customers regarding rights and remedies available to them. Therefore, business should also join hands in protecting consumers’ interest. Importance for consumer’s point of view. Consumer protection refers to protecting the interest of consumers. 3. Consumer Protection is important as consumers’ interests need to be safeguarded. Consumer protection measures are often established by law. Read on for an introduction to the Consumer Protection Act. It not only requires a judicial machinery for protecting the interests of consumers but also requires … Celebrating the day is a chance to demand that the rights of all consumers are respected and protected, and to protest against market abuses … Unorganized Consumers: In developing countries like India, consumers are not organized. The consumer is spoilt for choice and has a complete array of products to cater to his needs. 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