Consumer protection is not only needed for consumers but it is equally important for the business as well. Following are the reasons for it:
(i) Long term interest business: With increasing competition and the drive to survive in the market, customer satisfaction is of prime importance for any business. As, a satisfied consumer bring new customers by providing good feedback of the firm. So, the business firms can aim for long term profit maximisation through customers satisfaction.
(ii) Business uses society's resources: Business uses scarce resource of society so it is the responsibility of the business to use resources for the benefit of society and consumers.
(iii) Social responsibility: A business has social responsibility towards various stakeholders. The consumer is one of the important stakeholder. So, it is the responsibility of the business to protect their interests.
(iv) Government intervention: Government is actively involved in the protection of consumers rights. Any unfair trade practices may invite government intervention which may hamper the image of the business.