Why Is Consumer Protection Important?
Consumer protection makes markets work for both businesses and consumers.
Consumers need to be able to obtain accurate, unbiased information about the products and services they purchase. This enables them to make the best choices based on their interests and prevents them from being mistreated or misled by businesses. Consumer protection policies, laws and regulations help increase consumer welfare by ensuring that businesses can be held accountable.
Businesses that are known to treat consumers fairly will gain a good reputation and become more sought after. This increases their profitability and competitiveness which will also lead to economic growth in the long run. Consumer protection policies, laws and regulations guarantee that businesses are kept in check.
Economic growth and competitiveness
Consumer protection contributes to dynamic and effective markets for businesses to grow. Consumer demand drives innovation and economic development as businesses are required to maintain fair prices and good quality of their products and services.
With the emergence of cross-border and digital trade, cooperation on consumer protection amongst jurisdiction becomes a necessity. ASEAN has been trying to tackle these issues by developing the ASEAN Strategic Action Plan for Consumer Protection (ASAPCP) 2025.