Explain five reasons for consumer protection, stating in each case one relevant government law aimed at the enforcement.
Explanation
Reasons for consumers’ protection are:
(i) Exploitation: The consumers are protected from exploitation by the manufacturers through the indiscriminate price increase. This is done through the Price control Act.
(ii) Sub-standard goods: Manufacturers produce goods without taking into consideration the quality desired. The Standard Organization of Nigeria Act checks such practices.
(iii) Deceptive weights and measures: Sellers may use incorrect weights and measurements in selling goods to customers. The Weight and Measures Act of 1963 helps to prevent such practices.
(iv) Sale of harmful food and drugs: Consumers are also protected from dangerous goods, especially drugs. The Foods and Drugs Act protects the customers against such goods being offered for sale to them.
(v) Credit Purchase Agreement: Consumers are often not well informed about the details of such an agreement. They may inadvertently sign false credit facilities. The Hire Purchase Act is aimed at protecting the rights of such customers.
(vi) Misleading advertisement: Many claims made by advertisers about the performance of their products are not correct. Trade Description Act was enacted to check such practices.