Under self-regulation by business as a way of consumer protection, ma…

Under self-regulation by business as a way of consumer protection, many firms have set up which of the following?

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Customer service and grievance cells

Option (1) Customer service and grievance cells — Correct. Under self-regulation, many firms have set up customer service and grievance cells to redress the problems of their consumers.

Option (2) A code of conduct for their member firms — Incorrect. A code of conduct for member firms is laid down by business associations such as FICCI and CII.

Option (3) Laboratories for comparative testing of competing brands — Incorrect. Comparative testing of brands in accredited laboratories is done by consumer organisations and NGOs, who publish the results for consumers.

Option (4) A toll-free national consumer helpline — Incorrect. The toll-free national consumer helpline is set up by the Government of India.

NCERT (2026-27 Edition): “Ways and Means of Consumer Protection A consumers’ awareness about their rights and responsibilities is just one of the ways in which the objective of consumer protection can be achieved. There are other ways in which this objective may be achieved.
1. Self-regulation by Business: Socially responsible firms follow ethical standards and practices in dealing with their customers Good and ethical practices encourage firms to realise that it is in their long-term interest to serve the customers in a rightful manner. Many firms have set up their customer service and grievance cells to redress the problems and grievances of their consumers.”

“2. Business Associations: The associations of trade, commerce and business like Federation of Indian Chambers of Commerce of India (FICCI) and Confederation of Indian Industries (CII) have laid down their code of conduct which lay down for their members the guidelines in their dealings with the customers.”