Question

why are rules and regulations required in the marketplace ? explain any three reasons.

Answer 1

 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  Privatisation :- After 1991, the Government of India has withdrawn itself from most of the productivities, and allowed the private sector to take over.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.

Answer 2

Answer:

Rules and regulations are required in the marketplace to protect consumers against exploitation by sellers and service provider. Especially when large companies are producing these goods and these companies with huge wealth, power and reach can manipulate the market in various ways. Sellers often abdicate responsibility for a low-quality product, cheat in weighing out goods, add extra charges over the retail price, sell adulterated/ defective goods and also provide false information about a product or service. Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. Hence, rules and regulations are needed to protect the scattered buyers from powerful and fewer producers who monopolise markets. For example, a grocery shop owner might sell expired products and then blame the customer for not checking the date of expiry before buying the items.