Why consumers need protection

Consumers are often cheated. Unfair practices include: adulteration (mixing in cheap or harmful things); counterfeit (fake) and sub-standard goods; faulty weights and measures; hoarding to push prices up; charging more than the MRP (Maximum Retail Price); and misleading advertisements.

Markets used to follow caveat emptor, 'let the buyer beware': the buyer had to look after himself. Today they follow caveat venditor, 'let the seller beware': the seller is responsible for what he sells.

Why consumers need protection: many are ignorant of their rights; consumers are unorganised, so each one alone is weak against a big firm; and exploitation is widespread.

Why business should protect consumers too:

• Long-term interest: satisfied customers come back and bring repeat sales.
• Use of society's resources: a business uses resources that belong to society, so it should serve society's interest.
• Social responsibility towards all its stakeholders, including customers.
• Moral justification: it is simply right not to cheat.
• Avoiding government intervention: if business does not behave well, the government will step in with stricter rules.