Why are rules and regulations needed in the marketplace? Explain with examples
Answers
(a) MRTP Act (Monopolies and Restrictive Trade Practices Act) was enacted in 1984 to check unfair trade practices.
(b) COPRA was enacted in 1986 to protect consumers from exploitation in marketplace.
(c) Consumer courts have been set up to provide justice to the people who were treated unfairly in the marketplace.
Rules and regulations are required in the marketplace to protect the consumers against exploitation by the producers, sellers and service providers. They often indulge in unfair trade practices and provide false information about a particular service or product.
rules and regulations are required to:
protect workers in the unorganised sector
protect people from high rates of interest
protect th environment
protect consumers in the market place from exploitation