Consumer protection: Corrective measures

The failure of contemporary economies to give consumers “what they really want” manifests itself in a set of “consumer problems” that give rise to the demand for consumer protection. The pivotal problems: monopoly, informationally imperfect markets, consumer dissatisfaction or grievances, the underrepresentation of consumers, disadvantaged consumers. This article deals with the entire spectrum of measures designed to eliminate or correct these problems. It suggests criteria for assessing any corrective measure and deals generally with the merits and drawbacks of regulatory and legislative approaches before considering specific corrective measures. The body of the paper focuses on specific measures, giving examples and citing advantages and disadvantages. The paper is summarized by posing the crucial questions in consumer protection on which policy-makers and citizens alike must make up their minds.