Rules and regulations are required in the market place due to the following reasons :

1. The consumers are exploited by the shopkeepers and traders in different ways such as less weight or measurement, more price, adulterated and defective goods.
2. In case of a complaint regarding a good or service, the shopkeeper or trader tries to avoid any responsibility. The seller tries to shift all the responsibility onto the buyer as if the seller has no responsibility once a sale is completed.
3. Sometimes producers are few and powerful while the consumers purchase in small amounts and are scattered. Big companies with huge wealth manipulate the market in many ways.
4. At times false information is passed on through the media, and other sources to attract consumers. For example, a company for years sold powder milk for babies all over the world as the most scientific product claiming this to be better than mother’s milk. It took years of struggle before the company was forced to accept that it had been making false claims. Similarly a long battle was fought with the cigarette manufacturing companies to accept that their product could cause cancer.  Hence there is a need for rules and regulations to ensure protection for consumers.