(a) Explain five reasons why consumers need protection. (b) Mention any five government legislations aimed at protecting the consumer.

Answer Details

(a) Five reasons why consumers need protection

1. Ignorance of consumers: Many consumers do not know the true quality, ingredients or value of goods and can easily be deceived.
2. Sale of harmful and adulterated goods: Some traders sell fake, expired, adulterated or unsafe products that can harm the health and life of consumers.
3. Exploitation through overpricing: Consumers need protection from sellers who overcharge, hoard goods or create artificial scarcity to raise prices.
4. Misleading advertisements and labelling: False claims, wrong weights and measures, and deceptive labels can mislead consumers into buying the wrong goods.
5. Weak bargaining position: The individual consumer is usually weaker and less informed than the seller, especially a monopolist, and so needs support to obtain fair treatment.

(Other valid reasons: to guarantee the safety of consumers, and to provide a channel of redress when cheated.)

(b) Five government legislations aimed at protecting the consumer

1. Weights and Measures Act: Ensures that traders use correct weights and measures so that buyers get the right quantity.
2. Food and Drugs Act: Prohibits the sale of adulterated, harmful or expired food and drugs.
3. Standards Organisation of Nigeria (SON) Act: Sets and enforces quality standards for locally made and imported goods.
4. National Agency for Food and Drug Administration and Control (NAFDAC) Act: Regulates and controls the manufacture, importation and sale of food, drugs, cosmetics and chemicals.
5. Consumer Protection Council (Federal Competition and Consumer Protection) Act: Establishes a body to receive and settle consumer complaints and protect consumers' interests.

(Other valid examples: the Price Control Act, and the Trade Descriptions/Merchandise Marks legislation.)