Group 6

Consumer Protection Business Ethics

Definitions Consumer refers to any individuals or households that use goods and services generated within the economy. Consumer protection is a concept that is designed to ensure fair competition and the free flow of truthful information in the market place.

Consumers are often given a raw deal by way of substandard products, increased prices through market manipulation, failed warranties, poor after- sale services and a host of other unfair trade practices.

“A customer is the most important visitor on our premises “A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.” ― Mahatma Gandhi

The responsibilities of business to consumers Businesses have at least the following two general ethical duties to consumers, according to any theory of justice or morality that recognizes (a) that contractual relationships give them obligations and (b) that they have a right to non-injury: Businesses must give consumers what we pay for. Whenever there is trade, goods and services are exchanged within an implicit or explicit contract. One person is obligated to give one thing in exchange for another. People should not be deceived about what they are buying. For example, when they buy a TV set they expect (i) to get the TV set, (ii) that the TV set will function, (iii) that the TV set has minimally sufficient quality, and (iv) that the TV set will not harm us when used in ordinary ways. Businesses must not harm anyone, including consumers.

Consumer-rights Right to Safety- means safeguarding against goods that are hazardous to life and properties. Right to Information-means that consumers have the rights to be informed regarding the price,quality,quantity,etc.,regarding the products. Right to Choice-refers that consumers should be provided wide variety of goods to choose from. Right to be Heard-means the right of the consumers complaints to be heard. Right to Redress-means that the consumers have the right to seek redressal regarding their complaint in the forums. Right to consumer education-the right of the consumers to be educated about their rights.

Ethical Issues A practice is deemed unfair when it (1) offends public policy as defined by statutes, Common Law, or otherwise; (2) is immoral, unethical, oppressive, or unscrupulous; and (3)and substantially injured consumers. False Advertising is often the cause of consumer complaints.

Role of Consumer Product Commissions 1. To protect consumers from faulty or dangerous products by enacting mandatory safety standards for those products. 2. To ban products from the marketplace or to recall products (when a product is recalled, it is removed from the shelves or sales lots, and consumers may be able to return it to the manufacturer or place of purchase for repair, replacement, or a refund). Still, the agency has trouble protecting consumers from hazardous products of which it is unaware. 3. To handle consumer complaints, regulate unfair or deceptive trade practices.

Other Roles of Consumer Product Commissions 4. To give sufficient input on standards necessary for products before sale. The commission is able to achieve this by staying in close communication with the Bureau of Standards. 5. To mitigate the sale of counterfeit goods and services in the market. The commission serves as a middle man who enables the consumer to report the sale of counterfeit goods in the industry. 6. To educate consumers on their rights and responsibilities as consumers. Educating the consumers on counterfeit, low quality or hazardous goods is an important role of the commission.

Current trends Consumers are no longer well-informed Consumers are no longer self-sufficient. Both have bearing on the importance of business ethics regarding consumers.

Current trends

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