Why statutory protection (legislation) is needed to protect consumers entering into contracts with businesses and traders.

In simple words, Both companies and consumers benefit from consumer protection. Consumers must have access to reliable, unbiased information about the goods as well as services consumers buy. This allows individuals to make the best decisions for their own interests and protects them from being exploited or mislead by corporations.

The 1986 Consumer Protection Act aims to promote and defend customers' interests in the face of flaws and faults in goods as well as services.  Also it aims to protect a consumer's rights from unfair or discriminatory trade practices.