Consumer Benefits versus Cost of Consumer Protection
Consumers have an abundance of benefits to look forward to, according to Consumers International, a world federation of consumer groups with 240 member organizations in 120 countries. There are some benefited to the cost of production the consumer goods that are given below:-
(a) Economic cost: One category of consumer protection cost is an economic cost. Raising the cost of, sellers of product liability insurance, along with costs of depending charges of the FTC and other regulatory agencies, all result is higher product prices. Another economic cost in the cost to taxpayers of developing and operating the government bureaucracy needed to formulate and administer consumer production measures.
(b) Social cost: It is another category of consumer protection cost. It is the greatest potential social cost social cost and potential loss of individual freedom of choice another form of social cost concern by the government.
(c) Opportunity cost: It is the third category of consumer protection cost. It depends on the ordering of social priorities.