Consumer protection agency

Business Studies J.S.S 3 Second Term

WEEK 2

Consumer protection agency

Performance Objectives

Students should be able to:

     1. State the meaning of the consumer protection agency.

     2. State the need for consumer protection.

     3. Mention consumer protection agencies.

     4. State the roles and responsibilities of the consumer protection agencies.

Content

Meaning of Consumer Protection

Consumer protection is the government regulation made to protect the interests of consumers against exploitation by producers or manufacturers and ensuring maximum satisfaction. Hike in price, substandard goods, varying prices and inconsistent weight are some of the actions of producers that consumers are protected against.

Need for Consumer Protection

1. Lack of concern: Producers generally does not have a concern about consumer welfare. They are only interested in their profit or gain

2. To educate the public: Many consumers are not aware of the side effect of consuming certain goods, and the knowledge about the goods.

3. Maximum satisfaction: To ensure consumer derive optimum utility.

4. Illiteracy and Ignorance: Many consumers are ignorant of their right.

5. Protection against harmful, counterfeit and dangerous goods.

6. To ensure the production of quality and durable goods.

7. To check deceptive weight and measurement.

8. To guarantee or give warranty to goods not earlier inspected.

9. To reduce or prevent hoarding.

10. To ensure advert that discloses deceptive immoral, exaggerated or misleading information are curtail.

Regulators/Agencies of Consumer Protection with their Roles and Responsibilities

These are bodies, organization, association or government agencies that promote consumer protection. They include:

1. Consumer Protection Council (CPC).

2. National Communication Commission (NCC).

3. Standard Organization of Nigeria (SON)

4. National Electricity Regulatory Council (NERC).

5. National Agency for Food and Drug Administration Control (NAFDAC)

Roles and responsibilities of the Consumer Protection Council

1. They educate the consumer.

2. Help to provide redress.

3. Ensure consumers that are exploited are compensated.

4. Apply to court to obtain justice

5. Ensure manufacturer produce high-quality product.

6. To eradicate or remove from the market hazardous goods

7. To expose or publish a banned product.

8. To organize and undertake a campaign that will create public awareness.

9. To issue guidelines to Manufactures in relation to their obligation.

10. To encourage the trade industry and professionals to develop and enforce quality designed to safeguard consumer interest.

Roles and responsibilities of National communication commission

1. The protection and promotion of the interests of consumers against unfair practices including but not limited to matters relating to tariffs and charges for and the availability and quality of communications services, equipment and facilities.

2. Ensuring that licensees implement and operate at all times the most efficient and accurate billing system.

3. The promotion of fair competition in the communications industry and protection of communications services and facilities providers from misuse of market power or anti-competitive and unfair practices by other service or facilities providers or equipment suppliers.

4. Granting and renewing communications licences whether or not the licences themselves provide for renewal in accordance with the provisions of this Act and monitoring and enforcing compliance with licence terms and conditions by licensees.

5. Proposing and effecting amendments to licence conditions in accordance with the objectives and provisions of this Act.

6. Fixing and collecting fees for grant of communications licences and other regulatory services provided by the Commission.

Roles and responsibilities of the Standard Organization of Nigeria (SON)

1. Production and sale of a high-quality product.

2. Ensuring both local and international goods conforms to the standard.

3. Testing products, and assign numbers to certified products.

4. Convincing consumers that tested and certified product have met required standards.

Roles and responsibilities of the National Electricity Regulatory Council

1. Regulating the electricity rates paid by the consumer.

2. Monitoring and regulating the electricity industry Issuing license to a market participant.

3. Ensuring compliance with market rules and operating guidelines.

Roles and responsibilities of the National Agency for Food and Drug Administration Control

1. Elimination of fake and adulterated food, drug, water and cosmetics.

2. Enforcing the law and prohibiting importation and sale of fake food and drug.

3. Educating consumers on the danger inherent in taking harmful goods.

4. Empowered by statue to confiscated, arrest and destroy harmful goods and offenders.

5. Overseeing the production of food and drugs, and safeguard the nation’s health.

6. Establishing a quality assurance system.

7. Ensuring compliance with standard, and specification approved by the agency.