According to the FTC (Federal Trade Commission), they “Empowers consumers with free information to help them exercise their rights and spot and avoid fraud and deception”. http:,’/www. ftc. gov/bcp/. Consumer protection policies can’t be designed based only on what policymakers think consumers need. They must be grounded In the reality of consumers’ lives, based on solid research that shows how people really act and Interact with their financial services, and which provides insights into their ulnerabilities.
For example, recent research in behavioral economics has revealed that all types of consumers can behave in certain irrational ways, impacting consumers’ ability to make sound financial decisions. These behavioral biases ‘ need for first-hand consumer research to measure these patterns and test the effectiveness of consumer protection tools, such as disclosure forms, in their presence. How much protection should consumers have? Consumer protection is to protect buyer from the seller.
Everyday of our lives we consume, use, or simply come into contact with countless different products. We should be able to assume that those products are safe. Not absolutely safe – that remains unattainable. The goods we buy have become increasingly more complex. Modern technology and mass-marketing techniques combined with high-pressure salesmanship and sharp advertising can confuse the consumer. It isn’t always possible or practical to examine or test things before buying.
This is a pre-packed, ready-processed age where the gap between producer and purchaser has widened enormously. Very few traders actually manufacture, pack, distribute and sell their wn goods as there is usually a chain of other people involved increasing the chances of something going wrong, thus we need an effective system of consumer protection to deal with any problems and, to help prevent them from arising again in the future.
Consumer protection has been around for centuries. Hundreds of years ago merchants realized that both they and their customers benefited from having a standard system of weights and measures. It protected the honest from the dishonest. Is too much protection bad for business? Too much protection could lead to a paternalistic restriction of consumers’ autonomy. Where exactly to draw the line between protection and paternalism is subject to great dispute.
Proponents and opponents of consumer protection disagree on how much information consumers need to make decisions effectively, who is responsible for ensuring they have that information, what decisions consumers are competent to make without help, how often they lack the ability to make good decisions, and how voluntary their agreements are to the terms of various transactions. How these disputes are resolved is central to the design, role, and function of consumer rotection law. What duties should a business have toward its consumers?
Business’ social responsibility to customers is the process of conducting operations in accord with the general public’s welfare. Social responsibility is spread among all business and financial activities and is often regarded as corporate social responsibility because it indicates steps that business institutions must follow to promote social well-being. Through social responsibility, competing production sectors should promote a customer’s choice, above all; a customer would choose mong products that stand equal chances on the market.
For example, if a company steals a rival’s technology and incorporates it in its own product, claiming it as its own, this company is not socially responsible because of false claims. This deprives the customer of a choice of services or products because the individual has been I don’t think we need more laws. I think we have so many laws that we are forgetting that they exist. The goal is to enforce and implement the laws that are currently in place and hope for the success of those laws.