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In today’s Business Studies class, We will be discussing Consumer Protection. We hope you enjoy the class!
Consumer protection is a way of ensuring that consumers enjoy maximum protection from the goods they buy and the services rendered to them. This helps to reduce and prevent the exploitation of the consumers such as low-quality products and exorbitant prices on goods and services.
MEANING OF CONSUMER PROTECTION AGENCIES
Consumer protection agency is an agency set up for the purpose of monitoring the activities of the manufacturer and the middlemen in order to avoid exploitation and unscrupulous activities.
NEED FOR CONSUMER PROTECTION
- To reduce price increase caused by artificial scarcity by the manufacturers and the middlemen
- To prevent consumers from buying low-quality products as a result of false advertisement.
- To ensure that consumers enjoy maximum satisfaction from the goods they buy and the services rendered to them.
- To ensure that consumers have a constant supply of some essential goods and services
- To prevent artificial scarcity of goods as a result of hoarding by the manufacturers and the middlemen
AGENCIES OF CONSUMER PROTECTION
There are three basic organs or agencies of consumer protection and these are government agencies, the legislations and independent organizations.
- National Agency for Food Drug Administration and Control (NAFDAC): This is established by the federal government to oversee the production and distribution of food and drugs so as to examine the conditions under which such foods or drugs are produced. It safeguards the health of the nation.
- National Drug Law Enforcement Agency (NDLEA): This is established by the Federal Government to eradicate the use of hard drug and its trafficking.
- Standard Organization of Nigeria: This is established to ensure that both goods produced and imported into the country are of good standard and quality.
- Ministry of Health: This regulates the safety of the food items. For instance the cleanliness of abattoir, the healthiness of animals to be slaughtered
- Ministry of Environment: This regulates the building of houses and the sanitation of the environment.
- Federal Competition and Consumer Protection Commission: The Federal Competition and Consumer Protection Commission (FCCPC) is the apex consumer protection agency in Nigeria. The Commission was established by the Federal Competition and Consumer Protection Commission Act (FCCPCA) (Cap. 25, Laws of The Federation 2004). The overall mandate of the Commission is to protect consumers by taking both preventive and remedial measures.
These are laws made to protect consumers and they include the following.
- Sale of Goods Act 1893: This law protects consumers from buying goods that do not conform to the description and sample advertised.
- Weights and Measures Act 1963: It protects the consumers from being exploited in the weights and measures of goods.
- Food and Drug Act: It protects consumers from buying goods that are not well labelled or fit for human consumption.
- Rent Edicts: This helps to reduce the exploitation of tenants by landlords and agents.
- Hire Purchase Acts 1965
- Misrepresentation Act 1968
- Consumer Credit Act of 1974
These are non-governmental bodies that help in protecting the interests of consumers. They include the following.
- Trade associations
- Consumer Associations
- Mass Media
- Research Institutions.
- Define consumer protection.
- Mention four laws enacted to protect consumers.
Business Studies for Junior Secondary School 3 by O.A Lawal, Pages56-59
- Define manuscript.
- What is a margin?
- Give ten types of office equipment.
- State the function of each of the office equipment.
- State four roles of wages office.
- A way of making sure that consumers derive maximum satisfaction from the goods and services they buy is called ___ (a) Consumer exploitation(b) Consumer manipulation (c) Consumer protection (d) consumer legislations
- The following are the needs for protecting the consumers except (a) to avoid arbitrary behaviour (b) to ensure a constant supply of an essential product (c) to allow unscrupulous activities of the manufacturers (d) to prevent false advertisement claims.
- Consumers need to be protected against fake and substandard products. True/False
- Which of the following laws protects the consumer from misleading advertisements, handbills and sales promotion? (a)Rent Edict (b) Sale of Goods Act 1893 (c) Weights and Measures 1963 (d)Food and Drug Act 1995
- The agency that eradicates the use and trafficking of hard drugs is called___ (a) NAFDAC (b) SON (c) Ministry of Environment(d) NDLEA
- What are consumer protection agencies?
- List five government organizations that protect consumers and state the role of each one of them
GENERAL EVALUATION QUESTIONS
- Give five forms of business organization.
- Describe each of the forms of business organization as mentioned above
- Which is the oldest form of business organization?
- Give three merits and three demerits of the oldest form of business organization.
- What is bookkeeping?
We have come to the end of this class. We do hope you enjoyed the class?
Should you have any further question, feel free to ask in the comment section below and trust us to respond as soon as possible.
In our next class, we will be talking about How to make complaints. We are very much eager to meet you there.
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