The following represents the importance of consumer protection from t…

The following represents the importance of consumer protection from the business point of view:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Social responsibility towards interest groups

Option (1) Unorganized consumers — Incorrect. This is a reason from the consumer’s point of view. Consumers in India are not organised well enough to fight for their rights, so they need protection.
Option (2) Consumer ignorance of their rights — Incorrect. Also a reason from the consumer’s point of view. Most consumers do not know their rights and the reliefs open to them.
Option (3) Social responsibility towards interest groups — Correct. This is a reason from the business point of view: a business gains by protecting consumers. A business has social responsibilities towards various interest groups, and consumers are one of the most important of them. A business that makes money by selling to consumers must look after their interests too.
Option (4) Exploitation of consumers due to unfair trade — Incorrect. Again a reason from the consumer’s point of view. Consumers are exploited by unfair trade practices such as adulteration and misleading advertising.

NCERT (2026-27 Edition): “From the point of view of Business A business must also lay emphasis on protecting the consumers and adequately satisfying them. This is important because of the following reasons:”

“(iii) Social Responsibility: A business has social responsibilities towards various interest groups. Business organisations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stakeholders of business and like other stakeholders, their interest has to be well taken care of.”

“From Consumers’ point of view The importance of consumer protection from the consumers’ point of view can be understood from the following points:
(i) Consumer Ignorance: In the light of widespread ignorance of consumers about their rights and reliefs available to them, it becomes necessary to educate them about the same so as to achieve consumer awareness.
(ii) Unorganised Consumers: Consumers need to be organised in the form of consumer organisations which would take care of their interests. …”

“(iii) Widespread Exploitation of Consumers: Consumers might be exploited by unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black-marketing, etc. …”

The following represents the importance of consumer protection from the business point of view:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Social responsibility towards interest groups

Option (1) Unorganized consumers — Incorrect. This is a reason from the consumer’s point of view. Consumers in India are not organised well enough to fight for their rights, so they need protection.
Option (2) Consumer ignorance of their rights — Incorrect. Also a reason from the consumer’s point of view. Most consumers do not know their rights and the reliefs open to them.
Option (3) Social responsibility towards interest groups — Correct. This is a reason from the business point of view: a business gains by protecting consumers. A business has social responsibilities towards various interest groups, and consumers are one of the most important of them. A business that makes money by selling to consumers must look after their interests too.
Option (4) Exploitation of consumers due to unfair trade — Incorrect. Again a reason from the consumer’s point of view. Consumers are exploited by unfair trade practices such as adulteration and misleading advertising.