Why are rules and regulations required for the protection of consumers interest in the market place? Explain two reasons?
Answers
2. Privatisation :- After 1991, the Government of India has withdrawn itself from most of the productivities, and allowed the private sector to take over. So it was felt that there is a greater need to enforce discipline and regulations in the market, and to make the consumers aware not only of the commercial aspects of sale and purchase of goods, but also the health and security aspects.
3. To check powerful producers :- Market does not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. So rules are required to check these powerful producers.
4. False Information :- Most of the time false information is passed to the consumers through media and other sources to attract the consumers.
5. To provide compensation :- Rules and regulations are required to provide compensation to the exploited consumer. In India Consumer Courts have been established to provide justice to the consumers.
6. Weak consumers :- Without rules and regulations, a consumer will be without any weapon to fight against the sellers. Individual consumers often find themselves in a weak position due to weak rules and regulations. Whenever there is a complaint regarding a good or a service that had been bought, the seller tries to shift all the responsibility to buyer.
Answer:
1. To check adulteration :- Consumer awareness is also must because at times, greedy traders begin to play with the health of the people by indulging in adulteration of edible oils, milk, butter, ghee, etc.
2. Privatisation :- After 1991, the Government of India has withdrawn itself from most of the productivities, and allowed the private sector to take over. So it was felt that there is a greater need to enforce discipline and regulations in the market, and to make the consumers aware not only of the commercial aspects of sale and purchase of goods, but also the health and security aspects.
3. To check powerful producers :- Market does not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. So rules are required to check these powerful producers.
4. False Information :- Most of the time false information is passed to the consumers through media and other sources to attract the consumers.
5. To provide compensation :- Rules and regulations are required to provide compensation to the exploited consumer. In India Consumer Courts have been established to provide justice to the consumers.
6. Weak consumers :- Without rules and regulations, a consumer will be without any weapon to fight against the sellers. Individual consumers often find themselves in a weak position due to weak rules and regulations. Whenever there is a complaint regarding a good or a service that had been bought, the seller tries to shift all the responsibility to buyer.