Following are the main reasons responsible for the situation when rules and regulations are formed for consumer protection but they are not followed:
(i) Ignorant Consumers: Illiteracy in a country is highly responsible for ignorance of consumers. Even the literate consumers do not bother about the price, quality, quantity, durability or composition of the product, so it is easy for shopkeepers to breach the uncovered rules and regulations.
(ii) Limited Supply: If artificial scarcity is created for a particular good, the demand automatically increases, thereby prices rise and hoarding begin.
(iii) Red-tapism: Dishonest shopkeepers break rules and regulations and develop good relations with government officials put on duty, therefore it doesn’t help consumer anyways.
(iv) Limited Competition: If production of a particular good is in few hands, they restrict the supply of product and manipulate its price.
(v) Dishonest Government Officials: Law implementing officials themselves are corrupt and dishonest as they support the dishonest traders and shopkeepers by taking bribe from them.
