Importance of Consumer protection from Business Point of view
Consumer Protection has a broad program. It not only includes educating customers about their rights and responsibilities, but also helps in getting their grievances redressed. It not only requires judicial apparatus for protecting the interests of customers but also requires the customers to get together and form themselves into customer relations for protection and promotion of their interests. At the same time, consumer protection has a special importance for businesses too.
From the point of view of Business
A business must also lay emphasis on protecting the consumers and adequately satisfying them. This is important because of the following reasons:
(i) Long-term Interest of Business: Enlightened businesses realize that it is in their long-term interest to satisfy their customers. Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus, help in increasing the customer-base of business.
(ii) Business uses Society’s Resources: Business organizations use resources which belong to the society. They, thus, have a accountability to supply such products and render such services which are in public interest and would not impair public assurance in them.
(iii) Social Responsibility: A business has social responsibilities towards various interest groups. Business organizations make money by selling goods and providing services to consumers.
(iv) Moral Justification: It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation. Thus, a business must avoid unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing etc.
(v) Government Intervention: A business engaging in any form of exploitative trade practices would invite government intervention or action. This can impair and tarnish the image of the company.
Thus, it is advisable that business organizations voluntarily resort to such practices where the customers’ needs and interests will well be taken care of.