Consumer protection

Commerce SSS3 First Term

WEEK 1

Consumer protection

Performance Objectives

The student should be able to:

        1. Define consumer protection.

        2. State the needs/reasons for consumer protection.

        3. List the instrument/agencies for consumer protection.  

Content

Definition of Consumer Protection

Consumer protection can be defined as the various ways and methods adopted by the government and private organizations to ensure that consumers are not cheated or exploited by the producers and middlemen and that they derive maximum satisfaction from the consumption of goods and services they pay for.  

Reasons for Consumer Protection

1. Substandard goods or low-quality goods: Consumers are to be protected from such substandard and low-quality goods.

2. Misleading and fake advertisement: Consumers must not be misled as a result of buying a product or service.

3. Incorrect weights and measures: Consumers are protected to avoid the use of deceptive weights and measures in the sale of goods by the sellers.

4. To ensure maximum satisfaction: Consumers are protected so as to get maximum satisfaction from goods bought and value for money spent.  

5. Unreasonable high price: The consumers must be protected from exploitation caused by unreasonable high prices.

6. Protection against harmful and dangerous goods: They should be protected against dangerous goods or goods that may be harmful.

7. Credit purchase agreement: They must be protected against false credit facilities e.g. hire purchase.

8. Right to choose should not be restricted: This will ensure that a consumer gets the type of goods and services he demanded.

9. Regular supply of goods: Consumers are protected to ensure regular supply of goods.

10. Awareness of certain laws: Consumers need to be educated on hire purchase laws and other such laws.

11.  Inadequate instruction or direction: Consumers should be instructed on the right use of items so as not to suffer injuries e.g. electrical items.

 

Consumer Rights

 The rights of consumers are as follows:

1. They have the right to choose between alternatives.

2. Consumers have the right to good things of life

3. They have the right to safety

4. Consumer has the right to be heard

5. They have the right to be informed

6. Consumers have the right to receive value for their money

7. Consumers have the right to seek redress to correct any injustice

8. They have the right to live in a healthy environment.

Consumerism

Consumerism can be defined as the organized efforts or actions of consumers or individuals to protect themselves against the unfair practices of businessmen. It can also be defined as a protest against business injustices and the efforts to correct such injustices. Consumerism came into existence in 1960s when a movement to obtain a greater say in the quality of the products they bought started.

Instruments of Protection (e.g. Legislation)

In order to check the unfair practices of producers and middlemen, various legislations or laws have been enacted by the government. Some of the laws enacted to protect consumers are:

1. Food and Drug Act of 1955

2. Weight and Measures Act of 1963

3. Price Control Decree 1970

4. Trade Description Act 1968

5. Standard Organization Decree 1971

6. Hire Purchase Act of 1975

7. Sales of Goods Act 1893

8. Rent Edict

Agencies Responsible For Consumer Protection

1. Consumer Association

2. Manufacturers Association

3. Rent Tribunal

4. Price Control Board Food and Drug

5. Department of Ministry of Health

5. Standard Organization of Nigeria (SON)

6. Environmental Protection Agency

7. Public Health Department/Unit

8. Professional Bodies

9. Ministry of Trade and Industry