Which of the following statements about FICCI and CII as a way of consumer protection is incorrect?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → FICCI and CII are examples of self-regulation by business as a way of consumer protection.
Option (1) FICCI and CII are associations of trade, commerce and business. — True. FICCI and CII are associations of trade, commerce and business.
Option (2) FICCI and CII have laid down their code of conduct. — True. They have laid down their code of conduct.
Option (3) The code of conduct of FICCI and CII lays down guidelines for their members in their dealings with the customers. — True. The code gives guidelines to their members in their dealings with customers.
Option (4) FICCI and CII are examples of self-regulation by business as a way of consumer protection. — False. FICCI and CII are examples of business associations, a separate way of consumer protection. Self-regulation is done by a firm on its own, for example by setting up its own grievance cell.
NCERT (2026-27 Edition): “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.” |