Consumer protection: why consumers need it: WASSCE Commerce

A bag labelled "1 kg" that holds 900 g, a cough syrup past its expiry date, a phone charger that catches fire, an advert that promises what the product cannot do: consumers meet these every day. One buyer is weak against a large seller who knows more about the product. Consumer protection is the set of measures that guard buyers against such exploitation.

Learning objectives

By the end of this lesson you should be able to:

define a consumer, consumerism and consumer protection
explain why consumers need protection
describe the ways in which consumers are exploited
state and explain the rights of consumers
calculate the loss to a consumer from short weights and measures

Meaning

Definition

A consumer is a person who buys or uses goods and services for personal use, not for resale.
Consumer protection means the laws, organisations and actions that safeguard consumers against unfair practices, harmful goods and exploitation by sellers.
Consumerism is the movement that promotes the rights and interests of consumers.

Why consumers need protection

Ignorance: consumers often know little about the quality, contents or safety of what they buy, especially technical goods and medicines.
Weak bargaining power: one buyer cannot negotiate with a large company or a monopoly.
Profit motive: some sellers cheat to raise profits.
Persuasive and misleading advertising.
Complex products and contracts: electronics, insurance and credit agreements.
Monopolies can raise prices and lower quality when there is no competition.
Fake and substandard goods look like genuine ones.
Health and safety: unsafe food, drugs and appliances can kill.

How consumers are exploited

Practice	Example
Short weights and measures	Selling 900 g as 1 kg; using a dented or false-bottomed measuring cup or pan for rice, gari or palm oil
Adulteration	Mixing palm oil with dye, diluting fuel, adding stones or sand to grain
Expired goods	Selling food or drugs past their expiry date, sometimes with relabelled dates
Fake (counterfeit) goods	Fake drugs, spare parts, phones and cosmetics that copy famous brands
Misleading advertising and labelling	False claims about what a product does or contains
Overpricing and hoarding	Holding goods back to create scarcity, then raising prices
Dangerous goods	Unsafe electrical appliances, harmful chemicals in cosmetics (for example skin bleaching creams)
Unfair contract terms	Hidden charges, harsh credit terms, "goods once sold cannot be returned" on faulty goods
Poor after-sales service	Refusing to honour guarantees or repair faulty goods
Price discrimination and cartels	Sellers agreeing to fix high prices

Worked example

What does a short measure cost the consumer? A trader sells rice by a measure claimed to hold 2 kg, at NLe 40 a measure. The measure actually holds 1.6 kg.

Price the consumer believes they pay per kg $= 40 \div 2 =$ NLe 20
Price actually paid per kg $= 40 \div 1.6 =$ NLe 25
Overcharge per kg $= 25 - 20 =$ NLe 5, a hidden price rise of $\dfrac{5}{20} \times 100 = 25\%$
A family that buys 10 measures a month loses $10 \times 0.4 = 4$ kg of rice, worth $4 \times 20 =$ NLe 80 a month.

Short measures look small on each sale, but they add up to a serious loss.

Consumer rights

These rights are recognised in the United Nations Guidelines for Consumer Protection and by consumer movements worldwide:

Right	Meaning
Right to safety	Protection from goods and services that are dangerous to health or life
Right to be informed	Accurate information on contents, price, weight, quality, expiry date and use, so consumers can choose wisely
Right to choose	Access to a variety of goods at competitive prices
Right to be heard	Consumers' views considered in making policies and laws
Right to redress	Fair settlement of complaints: refund, repair, replacement or compensation
Right to consumer education	Knowledge and skills to be an informed consumer
Right to a healthy environment	Living and working in an environment free from pollution
Right to basic needs	Access to essential goods and services: food, water, shelter, health care, education

Effects of consumer exploitation

Health hazards and even death: fake drugs, contaminated food.
Loss of money to short measures and overpricing.
Loss of confidence in markets and local products.
Honest businesses lose customers to cheats.
Government loses revenue: fake goods are often smuggled.

In Sierra Leone

Market buyers in Sierra Leone often buy rice, gari and palm oil by the cup, pan or bucket, so a dented or false-bottomed measure cheats them on every sale. Fake and expired medicines sold by unlicensed street sellers are a serious danger. The authorities regularly seize and destroy such drugs, and campaigns warn people to buy from licensed pharmacies.

Common mistake

"Consumer protection" is not only about the government. It also includes consumer associations, producers' self-regulation, the media and consumers themselves, all covered in the next lesson.

Key points

Consumer protection safeguards buyers from unfair practices and harmful goods; consumerism is the movement for consumer rights.
Consumers need protection because of ignorance, weak bargaining power, the profit motive, misleading adverts, monopolies and fake goods.
Exploitation includes short measures, adulteration, expired and fake goods, misleading adverts, hoarding and unsafe products.
Consumer rights: safety, information, choice, to be heard, redress, education, a healthy environment and basic needs.

WASSCE examination focus

WAEC tests this

Expect to define consumer protection, to explain why consumers need protection, to describe ways consumers are exploited, and to state the rights of consumers. Use local examples, such as fake drugs or short measures, to show understanding.

Quick check

Define consumer protection.
Give three ways in which consumers are exploited.
What is the right to redress?
A "5-litre" container of palm oil holds 4.5 litres and sells for NLe 90. What is the true price per litre?

Answers: 1. The laws, organisations and actions that safeguard consumers against unfair practices, harmful goods and exploitation by sellers. 2. Any three: short weights and measures, adulteration, expired goods, fake goods, misleading advertising, overpricing and hoarding, dangerous goods, unfair contract terms, poor after-sales service. 3. The right to a fair settlement of genuine complaints, by refund, repair, replacement or compensation. 4. $90 \div 4.5 =$ NLe 20 per litre (not NLe 18 as it appears).

Consumer protection: why consumers need it