Consider the following statements about business associations as a way of consumer protection:
(A) The associations of trade, commerce and business have laid down their code of conduct.
(B) The code of conduct of business associations lays down guidelines for their members in their dealings with the customers.
(C) FICCI is an association of trade, commerce and business.
(D) Business associations like CII file complaints in appropriate consumer courts on behalf of the consumers.
(E) Business associations like CII have set up customer service and grievance cells to redress the problems of consumers.
How many of the statements given above are correct?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Three
(A) The associations of trade, commerce and business have laid down their code of conduct. — Correct. Business associations have laid down a code of conduct.
(B) The code of conduct of business associations lays down guidelines for their members in their dealings with the customers. — Correct. The code guides members in dealing with customers.
(C) FICCI is an association of trade, commerce and business. — Correct. FICCI, the Federation of Indian Chambers of Commerce of India, is one such association.
(D) Business associations like CII file complaints in appropriate consumer courts on behalf of the consumers. — Incorrect. Filing complaints on behalf of consumers is a function of consumer organisations and NGOs.
(E) Business associations like CII have set up customer service and grievance cells to redress the problems of consumers. — Incorrect. Grievance cells are set up by individual firms under self-regulation by business.
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.” “Role of Consumer Organisations and NGOs … (vi) Filing complaints in appropriate consumer courts on behalf of the consumers.” |