Why are rules and regulations required for the protection of the consumers, in the marketplace ? Explain with examples.
Rules and regulations are required for consumers’ protection because:
1. Sellers usually don’t accept responsibility for the sold products if there is any defect. For example, if a consumer who bought a utensil complains about the defect, then the seller may just ask the consumer to go to another shop.
2. Exploitation of consumers can happen in different ways like use of faulty weights. For example, a trader can weigh less good than what he is supposed to.
3. Consumers can be sold adulterated good purposefully. For example, adding colour to spices and then selling them.
4. If producers are few and consumers are many, producers can exploit lack of competition. For example, big companies can sell the product at any price they want because consumers don’t have a choice.
5. False information can be advertised on media to attract buyers. For example, a company selling baby milk powder advertised for a long time that it was better than mother’s milk.