Ways By which Government Regulates Business Activities

Consumers must be protected from business owners who are eager to sell without taking into consideration the well-being of customers.  Consumers must be protected from overcharging, poor quality goods and services and short measurements and weights.

Consumers are protected by legislation delegated to various government agencies. These agencies include:

1. The Consumer Affairs Commission- aids consumers with redress

2. The Fair Trading Commission- investigates cases of tied selling and misleading advertising.

3. The Bureau of standards – set standards for goods and services to be sold on the market.

4. The Ombudsman- investigates injustices suffered by citizens from dealing with a government agency or official.

Consumer Protection Laws

-The Food and drugs Act

-The Standards Act

-The public Health Act

-The weights and measures Act

-The processed food Act

-The hire purchase Act

Hire Purchase Law 

Buyers and sellers must sign the hire purchase contract. The seller must state the cash price, down payment and monthly instalments and total to be paid. Goods cannot be repossessed by the seller once the buyer pays up to three quarters of the hire purchase price.

Price controls

Price controls are levied on certain good and services to prevent suppliers from increasing prices. For example basic food items such as corn meal, flour, rice and sugar.

Zoning Laws

These laws protect the environment by identifying certain wildlife areas that should not be disrupted by development. Therefore, areas are designated for factories, shopping centres and residential, away from protected wildlife.


Firms that pollute the atmosphere, rivers and seas are charged a tax for the harm caused to the environment. This forces firms to find methods to reduce pollution to avoid this penalty.

Previous | Next