Explain briefly any two points of importance of consumer protection from the point of view of business.

Two points of importance of consumer protection from the point of view of business.

(i) Long term interest of the business: In the competitive environment, the businessman can win and capture a big share in the market only through consumer satisfaction. Those who ignore the interest and satisfaction of consumers may loose their goodwill and clients.

(ii) Social Responsibility: Just like other stakeholders, towards consumers also, businessmen has got social responsibility to provide quality goods at reasonable price. Consumer protection guides businessmen to fulfill social responsibility towards consumers.

(iii) Government Intervention: If businessmen want to avoid intervention of Government then they should not involve in unfair trade practices and exploitative practices towards consumers.

Importance of Consumer protection from the point of view of business :

(i) Long-term interests of business.

(ii) Business uses society’s resources.

(iii) Social Responsibility.

(iv) Moral Justification.

(v) Government Intervention.

Detailed Answer :

Two points of importance of consumer protection from the point of view of business.

(i) Long term interest of the business : In the competitive environment, the businessman can win and capture a big share in the market only through consumer satisfaction. Those who ignore the interest and satisfaction of consumers may loose their goodwill and clients.

(ii) Social Responsibility : Just like other stakeholders, towards consumers also, businessmen has got social responsibility to provide quality goods at reasonable price. Consumer protection guides businessmen to fulfill social responsibility towards consumers.

(iii) Government Intervention : If businessmen want to avoid intervention of Government then they should not involve in unfair trade practices and exploitative practices towards consumers.

Following points explain the importance of consumer protection in India : 

1. long-term interest of business – It is in the long-term interest of the business to satisfy their customers. After liberalisation and globalisation, it is in the interest of the firm to produce quality goods and maintain its reputation. Satisfied consumers ensure long-term profit-maximisation. 

2. Consumer awareness – Now-a-days, consumers are becoming more conscious of their rights against the malpractices by the business. There are many consumer organisations which are iftaking efforts to build consumer awareness. 

3. Social responsibility – A business has social responsibilities towards various groups. Consumers form an important group among the many stakeholders of business. Hence, business has to take care of interests of consumers.