Question

In what ways does the market approach to consumer protection fall short of completely protecting consumers?

Answer 1

“Market approach to consumer protection” aims to have protection on the basis of supply and demand. For example, in case a consumer wanted to have an extra safety feature in the product and will not make a purchase until it is available on a higher price). Thus, safety should not be mandated by government rather should be offered by the market based on the consumer’s demand. The price of safety depends on the value given by the consumers in the market. Hence, Government intervention in these situations make it coercive and completely unfair. But there are a few government based systems which performs checks on the claims made by the product producer in order to gain the consumer trust and consumer to take a right decision on their purchase.