The above statement is True.
The following points emphasis the importance of consumer protection:
1. Seller dominant market: -If the market is dominated by sellers than the consumer's choice as well as his welfare gets the last preference. All the transactions are finalized in favour of sellers, middlemen and manufacturers. E.g. if there is shortage of goods then the buyer will have to buy a product at the price quoted by the seller.
2. Ignorance of consumers: -Ignorance of consumers about their rights, market conditions, price levels, product details, etc. result into consumer exploitation. Many times consumers do not even realize that they are being cheated. E.g. a shopkeeper may sell a product which is actually received by him as free sample; fee gifts offered by company may not reach upto the consumer.
3. Tendency of the Consumers: -Majority of the consumers get attracted towards the products of cheap prices, discounts, various schemes, etc. this weakness of the consumers leads to their exploitation without their knowledge.
4. Unorganized Consumers: -Consumers are neither organized nor united. Compared to them the producers and sellers are in a superior position. An individual consumer cannot fight against powerful traders. Thus, it is easy to exploit unorganized and widely spread consumers.
