What is the purpose of consumer protection laws in a free enterprise economy?

What is the purpose of consumer protection laws in a free enterprise economy?

• A. To regulate prices in the marketplace
• B. To safeguard buyers from harmful business practices
• C. To promote monopolies
• D. To limit business growth

Answer: (B)

The purpose of consumer protection laws in a free enterprise economy is primarily to safeguard buyers from harmful business practices. These laws are designed to ensure that consumers are treated fairly and that they have the right to access accurate information about products and services. This protection helps prevent fraudulent activities and ensures that businesses operate transparently, thereby fostering trust in the marketplace. By protecting consumers, these laws also encourage healthy competition among businesses, as companies are held to standards that prioritize consumer interests. This can lead to improved product quality, better customer service, and overall market efficiency, which benefits both consumers and the economy.