1. Which is acclaimed to be the ‘Magna Carta’ of Indian Consumers?

1.	1. Which is acclaimed to be the ‘Magna Carta’ of Indian Consumers? 2. Explain its importance.
Answer» 1. Consumer Protection Act, 1986. 2. Importance of Consumer Protection Act a. From Consumers’ point of view: It is necessary to educate the customers about their rights. Consumers need to be organised in the form of consumer organisations which would take care of their interests. To protect the consumers from unscrupulous, exploitative and unfair trade practices. b. From the Point of View of Business: Business firms should aim at long term profit maximization through customer satisfaction. Business organisations use resources which belong to the society. A business has social responsibilities towards various interest groups. It is the moral duty of any business to take care of consumer’s interests and avoid any form of their exploitation. A business engaging in any form of exploitative trade practices would invite government intervention or action.

1. Which is acclaimed to be the ‘Magna Carta’ of Indian Consumers? 2. Explain its importance.

Answer»

1. Consumer Protection Act, 1986.

2. Importance of Consumer Protection Act

a. From Consumers’ point of view:

It is necessary to educate the customers about their rights.
Consumers need to be organised in the form of consumer organisations which would take care of their interests.
To protect the consumers from unscrupulous, exploitative and unfair trade practices.

b. From the Point of View of Business:

Business firms should aim at long term profit maximization through customer satisfaction.
Business organisations use resources which belong to the society.
A business has social responsibilities towards various interest groups.
It is the moral duty of any business to take care of consumer’s interests and avoid any form of their exploitation.
A business engaging in any form of exploitative trade practices would invite government intervention or action.