Consumer Protection and Awareness – JSS3 Business Studies Lesson Note (Second Term)

Consumer protection is a way of making sure that consumers get maximum protection from the goods they buy and the services rendered to them.

Behavioural objectives

By the end of the lesson, students should be able to:

1. explain consumer protection and consumer protection agencies;
2. state the needs for consumer protection;
3. name the three types of consumer protection agencies;
4. list government organisations that protect consumers and state the role of each;
5. list laws made to protect consumers.

What is consumer protection?

Consumer protection is a way of ensuring that consumers enjoy maximum protection from the goods they buy and the services rendered to them.

• Aim: to reduce and prevent the exploitation of consumers.
• Low-quality products: goods that are fake or substandard are one form of exploitation.
• Exorbitant prices: charging far more than a good or service is worth is another form.
• Sources of protection: government organisations, laws and independent bodies.

What are the key terms in consumer protection?

These words appear often in this topic.

• Consumer: a person who buys and uses goods and services.
• Manufacturer: a person or firm that makes goods.
• Middleman: a trader, such as a wholesaler or retailer, who stands between the producer and the consumer.
• Exploitation: unfair treatment of buyers for the gain of sellers.
• Hoarding: keeping goods away from the market so that they become scarce.
• Artificial scarcity: a shortage created on purpose, which pushes prices up.
• False advertisement: an advert that makes untrue claims about a product.

What is a consumer protection agency?

A consumer protection agency is a body set up to monitor the activities of manufacturers and middlemen to avoid exploitation and unscrupulous activities.

• Monitoring: it watches how goods are made, priced, advertised and sold.
• Enforcement: it acts against producers and sellers who break the rules.

Why do consumers need protection?

Consumers need protection because producers and middlemen can cheat them in price, quality and supply.

1. Price control: to reduce price increases caused by artificial scarcity created by manufacturers and middlemen.
2. Honest advertising: to prevent consumers from buying low-quality products as a result of false advertisements.
3. Satisfaction: to ensure that consumers enjoy maximum satisfaction from the goods they buy and the services rendered to them.
4. Steady supply: to ensure that consumers have a constant supply of some essential goods and services.
5. No hoarding: to prevent artificial scarcity of goods as a result of hoarding by manufacturers and middlemen.

What are the types of consumer protection agencies?

There are three types of consumer protection agencies: government organisations, laws (legislation) and independent organisations.

What are the government organisations that protect consumers?

Government organisations are bodies set up by government to check producers and sellers.

• National Agency for Food and Drug Administration and Control (NAFDAC): established by the Federal Government to oversee the production and distribution of food and drugs and to examine the conditions under which they are produced. It safeguards the health of the nation.
• National Drug Law Enforcement Agency (NDLEA): established by the Federal Government to eradicate the use of hard drugs and their trafficking.
• Standards Organisation of Nigeria (SON): established to ensure that goods produced in the country and goods imported into it are of good standard and quality.
• Ministry of Health: regulates the safety of food items. For instance, it checks the cleanliness of the abattoir and the health of the animals to be slaughtered.
• Ministry of Environment: regulates the building of houses and the sanitation of the environment.

What are the laws that protect consumers?

Legislation means laws made to protect consumers from unfair sellers.

• Sale of Goods Act 1893: protects consumers from buying goods that do not conform to the description and sample advertised.
• Weights and Measures Act 1963: protects consumers from being exploited in the weights and measures of goods.
• Food and Drug Act: protects consumers from buying goods that are not well labelled or fit for human consumption.
• Rent Edicts: help reduce the exploitation of tenants by landlords and agents.
• Hire Purchase Act 1965: protects buyers who pay for goods in instalments.
• Misrepresentation Act 1968: protects buyers from false statements made to persuade them to buy.
• Consumer Credit Act 1974: protects people who buy goods or services on credit.

What are the independent organisations that protect consumers?

Independent organisations are non-governmental bodies that help to protect the interests of consumers.

• Trade associations: groups of traders in the same business who set rules of fair dealing for their members.
• Consumer associations: groups of buyers who speak for consumers and report unfair sellers.
• Mass media: radio, television and newspapers that warn the public about fake goods and unfair practices.
• Research institutions: bodies that test products and publish what they find.

How can a consumer protect himself or herself?

A well-informed buyer is the first line of protection.

1. Read the label on the product.
2. Check the expiry date of food and drugs.
3. Look for the NAFDAC number on packaged food and drugs.
4. Check the weight or quantity before paying.
5. Collect a receipt for the goods bought.
6. Report unfair sellers to the proper agency.

Evaluation

1. Define consumer protection.
2. Mention four laws enacted to protect consumers.
3. Name the three types of consumer protection agencies.
4. State three reasons why consumers need protection.
5. State the role of NDLEA.

Assignment

1. List five government organisations that protect consumers and state the role of each one of them.

Reading: Business Studies for Junior Secondary School 3 by O.A. Lawal, pages 56 to 59.