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What is done with the costs of complying with the consumer protection regulations?
Wiki User
∙ 9y ago
Government regulations are needed but they add to the costs of complying with the regulations. Most often this results in a higher price for consumers. But that is not always the case. Companies benefit all around by cutting the costs of production with new technologies. These cost savings can at times offset the cost of regulations.
Dewitt Abbott
Wiki User
∙ 11y agoAPEX---- Eventually passed on to consumers in the form of higher prices
Wiki User
∙ 7y agoGovernment regulations are needed but they add to the costs of complying with the regulations. Most often this results in a higher price for consumers. But that is not always the case. Companies benefit all around by cutting the costs of production with new technologies. These cost savings can at times offset the cost of regulations.
brycelewellen03
eventually passed on to consumers in the form of higher prices.
Anonymous
Eventually passed on to consumers in the form of higher prices. -apex
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What does complying with consumer-protection regulations do?
Complying with consumer protection regulations increases production costs and raises prices.
How do companies pay for the costs associated with complying with consumer-protection regulations?
by raising prices
What does consumer protection regulations do?
Complying with consumer protection regulations increases production costs and raises prices.
Why do companies pay for the costs associated with complying with consumer-protection regulations?
They need to make products that are safe and follow consumer laws. Since they sell the products they need to pay for the associated costs. If you bought a product where you or your child were hurt or killed using it the company is at fault for making it.
What is one drawback to consumer-protection regulations?
Higher costs for production, leading to higher consumer prices.
What does complying with consumer -protection regulations do?
Complying with consumer protection regulations increases production costs and raises prices.
Ask us do government regulations lead to higher prices for consumers?
Producers pass along the costs of compliance. The costs of compliance are passed on to the consumer.
Why does globalization lead to environmental damage?
Environmental-protection regulations increase compliance costs and decrease economic competitiveness.
How does deregulation help consumers?
You should understand that regulation or deregulation has many different consequences, both good and bad. Regulations are usually put in place to protect the consumer in some way, for example, to ensure that the food that people buy will be healthy for them to eat, rather than tainted or poisonous in some way. On the other hand, when a producer of a product has to comply with regulations, and has to prove compliance, that has costs to the producer, and when the producer has additional costs, those costs are passed on to the consumer in the form of a higher price for the product in question. So the consumer may be getting a safer or better product as a result of regulations, but the consumer will also be paying more for that product. Added to those complex issue is the fact that not all regulations are well designed. Lawmakers may or may not know what they are doing. Some regulations have purely political motives, and are intended merely to create the impression of responsible government rather than actually being responsible. So really, any given regulation has to be considered on its merits. Regulation is not always a good thing, and deregulation is not always a good thing.
When an action is undertaken by a consumer what kind of costs emerge?
opportunity
Why have consumer Protection?
There are several important reasons for some sort of formal "consumer protection." To take it first from the consumer's point of view, the seller has possession of the item for sale and is in a much better position to know the product and/or prevent the consumer from seeing anything wrong with it. Very often, also, the seller is in a financially superior position in general and is able to intimidate the purchaser. Finally, in a society like ours in the U.S. where the producer may be far away from the market, consumer protection prevents a seller from escaping the consequences of inferior or dangerous products just because the victim is far away. From the society's (including the seller's) point of view, some sort of consumer protection allows there to be more trust between the parties to a sale. This reduces negotiation time and other "transaction" costs and makes it possible to do more business. That is, theoretically, one reason the American and European commercial systems are more stable and prosperous than those of some third-world countries.
What are welfare payments or consumer subsidies?
Costs and conquenses of providing subsidies
