Explain the importance of consumer protection from the point of view of a business.

Consumer protection refers to the consumer education regarding their rights and responsibilities and the redressal of their grievances and complaints. Consumer protection is important not just for consumers but also for business. The following points highlight the significance of consumer protection from the point of view of business.

(i) Long-Term Interest: With increasing competition and the drive to survive in the market, consumer satisfaction and interest is of prime importance for any business. While taking due care of the interest of the consumers, a business builds goodwill and reputation. A satisfied ustomer not only comes back and results in repeated sales for the firm, but also pulls new customers by spreading the good word. Thus, it is in long-term benefit of the business to protect consumers’ interest.

(ii) Use of Resources: A business uses the resources of society for the production of various goods and services. Through the sale of these goods and services to the society, a business earns profits. Thus, it is their duty to supply such goods and services that adhere to the overall interest of the society.

(iii) Ethical Reasoning: Today moral values and ethics play an important role in business. It is the moral duty of every business to protect the interests of its customers. They must follow ethical and moral values and avoid any form of exploitation of the consumers such as unfair trade practices, adulteration, etc.

(iv) Responsibility towards Society: As the business earns profits by selling various goods and services to consumers, it becomes their responsibility to take care of the interests and satisfaction of the consumers.

(v) Government Interference: A business organisation that indulges in any form of exploitation of consumers such as unfair trade practices, adulteration, etc. draws intervention from the government. Such government interference spoils the goodwill and image of the business. Thus, it is in the interest of the business to voluntarily follow such practices that take care of the interest of the consumers.

 From the point of view of business 

(i) Long term interest of business: it is in the long term interest of business 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. Thus, business firms should aim at long term profit maximization through customer satisfaction. 

(ii) Business uses society’s resource: Business organizations should supply such product and render such services which are in public interest and would not impair public confidence in them 

(iii) Social Responsibility: A business' has social responsibilities towards various stakeholders like investors, consumers, employees. Since businesses make money by selling goods and providing services, consumers form an important among the many stake holders of business. 

(iv) Moral justification: A business has the moral duty to take care of consumer's interest and avoid any form of their exploitation.