Consumer protection refers to the protection of consumers against improperly described, damaged, faulty and dangerous products and services. It also protects consumers from unfair trade and credit practices. Importance of consumer protection from the point of view of business is:
(i) Long-term interests of businesses: In the long-term, businesses need to keep their customers satisfied by providing good quality products and services to sustain as doing this they will be exposed to increased competition and increased demand for their products and services.
(ii) Businesses use society's resources: A business should produce and provide products and services that do not harm the overall society as they use natural resources (like land, water, minerals, etc.), human resources and capital which are obtained from the society.
(iii) Social responsibilities: The main responsibility of a business is not just profit-making but also catering to the overall community's interests.
(iv) Moral or ethical justification: Businesses need to maintain certain level of ethical standards and policies that ensures trust between consumers and all stakeholders in the market by producing morally or ethically valued products or services, which also assist in building image and reputation of businesses in the long-run.
(v) Government intervention: Government intervention means that businesses are directed by governments for maintaining consumer protection practices. This may cause harm to businesses' image and reputation. Businesses should voluntarily imbibe consumer-oriented practices within their organisations to protect and safeguard consumers' interests.