Why must consumers be protected?

Answer 1

NEED FOR CONSUMER PROTECTION

Consumer protection is justified on two primary grounds. First, it promotes a more efficient functioning of the market by compensating for the imbalance between consumers and sellers as regards bargaining power and informational control. Consumers are generally isolated individuals who do not have the substantial resources or power to engage traders in specific and favourable bargains, in light of the standard form contracts which are dominantly used in electronic contracts around most parts of the world.Answers.comFurthermore, sellers often have dramatically superior information, while seldom supplying sufficient information for consumers, and the increased speed with which global transactions can be carried out means that consumers generally have less time to consider purchases. Even on the flipside, high information volume mechanisms like the internet can have information deficiency problems, because the large volume of information available may hamper consumers from attempting to find specific informationAnswers.comnecessary for the conclusion of the contracts. In the absence of adequate remedial measures to compensate to compensate for the unequal bargaining power between consumers and sellers, the market will ultimately fail.

In the Ugandan context, the above justification holds a lot of truth, considering that the majority of those who purchase goods through electronic commerce, are in respect of small value goods and therefore, with no capacity to negotiate with the big traders (assuming that they are even aware of that possibility!). Further, Ugandan's are generally predisposed to ignore informational requirements and few attach value to the information supplied. They will there be less inclined to seek for more information from the traders.

The second justification for consumer protection is the societal recognition of the right of consumers to be protected from dangerous goods and deliberate attempts by vendors to exploit the consumer's weaker position. Legal structures are created to protect consumers from harmful substances such as defective foods and drugs. Consumer protection regimes may also seek to protect consumers from making costly and dangerous mistakes because of a lack of information as to the quality and usefulness of the product or service they acquire. The intended effects of these socially motivated forms of regulation are the promotion of consumer confidence in the safety and justice of the marketplace, and indirectly, the prevention of social unrest and economic failure.

Uganda has tried to achieve this latter objective through the establishment of a public body to specifically address that challenge. Through the Uganda National Bureau of Standards ActAnswers.com, the Uganda national bureau of standards (UNBS) was established to among other duties; carry out conformity assessment of products and services based on quality and standards requirements, so as to protect consumers against substandard, shoddy and hazardous products. Despite that, Uganda still remains a haven for various substandard and hazardous products, most of which are imported.

IDOOT AUGUSTINE

Answer 2

1. It can serve the interest of both the consumer and business person. As ignoring the interest and protection of customers may be a sure death of business.

2. Exploitation of consumer is against the Directive Principles of State policy laid down in the constitution.

3. business moulds and create lifestyles,food and dresses, habits,improves standard of living,e.t.c. Therefore, it is the responsibility of business to set standards that may not damage the cause of consumers.

4. Business without ethical values is nothing but a criminal activity. No civil society will tolerate such business any longer in times to come.

5. Consumers are the foundation of business, without them business can1t survive longer. So it is necessary to protect their rights and provide them goods of right quality quantity and price to retain them forever. 6. Killing your customers is bad for business.

Answer 3

Corporations must meet certain standards of quality in order to protect the public. This applies for example on farm or stockyard driven products. Government inspectors must make sure all the requirements are met with regard to safety and quality. Another example is in the finance industry. Regulations are needed to set rules for credit card companies to make sure they are not overcharging their customers on their credit card bills. This is need because in the past bad practices were unfair to customers.

Answer 4

*to get maximum satisfaction for the money he pays

*to get legal cover

*to protect from unhealthy goods