Consumer Protection Research Paper

1004 Words5 Pages

Consumer protection and competition policy

The Consumer information reduces risk of anti-competitive market.
Consumer protection and competition policy are play a very important role in situation when a market starts to fail. Where a market fails it is observed that such failure is caused by failed regulation or consumers failing confidence. So some kind intervention is necessary when such failure arises. When such intervention is made it becomes necessary to check what lead to a market failure. Every market failure has its own causes and can be resolved by remedies which are appropriate for such failure.
One of such reason for failure is lack for consumer information. Even if there is competition in the market but consumer doesn’t have enough …show more content…

But it is not completely true as they tend to lack encouragement to do the same. Competition policy are largely concentrate on the maintaining a look over the firms where they tend to miss out on the aspect that it is consumer conduct is one of the important things on which competition policy should also be made on. In most of the markets it is always assumed that business and consumer have optimal level of information about the goods and services that are available in the market. Generally we can see that it’s hard to find to find examples where market failure is because of the information failure because in current market large amount of advertisement is done, so that people know what kinds are goods available in the …show more content…

had made an anti competitive agreement between themselves. That was in violation of Article 81 of the EU Treaty and, where punished a hefty fines that was amounting Euro 9,743,000.an investigation was done which provided with information that from period 2000 to 2004, these companies adopted. There was parallel behaviour between them and the price of the milk compare to the other nations was higher than those in other European nations.
The procedure began on july, 8 2004, number of interventions were made by the Italian ministry, which lead to fall in price of the milk fall by 25% within a period of month. These reduction lead to further information availability to the consumers such as type of milk products, character of ingredients used, proper advertisement to the consumer and new goods with lowered

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