Consumer protection is necessary due to following reasons : 

Consumer is the purpose of business : Customer is the foundation of business and keeps it in existence. It is a consumer who not only relates to repeat sale but also provide positive feedback to other customers and thus results in an increased consumer base for business.

Business uses society’s resources : Business exercises considerable power and influence over society . It is the duty of the business to use the resources in such a way that the interests of society in general and consumers in particular are not damaged. Consumer’s protection aims at satisfying them and thus protect the long term interests of the business itself.

Ethics : Leading business houses all over the world have been founded on ethical values and they have followed high standards of ethics. To take care of consumer’s interests and to avoid any form of their exploitation is the moral duty of every business. Therefore, consumer protection is the ethical obligation of business.