Which way of consumer protection can force business firms to avoid malpractices and exploitation of consumers?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Consumer organisations
Option (1) Consumer organisations — Correct. Consumer organisations educate consumers about their rights and protect them. They can force business firms to avoid malpractices and exploitation of consumers.
Option (2) Self-regulation by business — Incorrect. Under self-regulation, firms themselves follow ethical practices. Nobody outside forces them.
Option (3) Business associations — Incorrect. Business associations such as FICCI and CII lay down a code of conduct to guide their members. It guides member firms from within the trade; it does not force firms to avoid malpractices.
Option (4) Consumer awareness — Incorrect. Under consumer awareness, a well-informed consumer raises his own voice against unfair trade practices. Here the consumer protects himself in his own dealings; he does not act as a body that forces business firms.
NCERT (2026-27 Edition): “3. Consumer Awareness: A consumer, who is well-informed about his rights and the reliefs available to him, would be in a position to raise his voice against any unfair trade practices or unscrupulous exploitation. …” “Consumer Organisations: Consumer organisations play an important role in educating consumers about their rights and providing protection to them. These organisations can force business firms to avoid malpractices and exploitation of consumers.” |