Question

Mention a few factors which cause exploitation of consumers.

Answer 1

The Main factor behind exploitation of consumers is when the producers are very powerful and few in number, whereas the consumers are scattered and buy the products in small numbers.

• A very protracted battle was fought in courts against the cigarette manufacturing companies, to make them accept that their products were highly likely to cause cancer among its users.
• Huge companies have the capacity to manipulate the market, through false information passed on to the media. An international giant sold powder milk for babies in the market, claiming that it was better than mothers milk. After years of struggle, the company had to retract their false claims.
• The other factor behind exploitation is the shift in the blame whenever customers are cheated. If there is a problem with the goods or services availed by the consumer then the trader will blame the producer and not solve the problem of the consumer.
• The other factor is the rude behaviour after the sale of the product or service by the trader. If the consumer goes with a complaint, then the trader will ask the consumer to go and buy the product or service from elsewhere if the consumer is unhappy, instead of solving the problem of the consumer.

Exploitation of consumers in the marketplace happens in many ways. Some of the ways are given below:

• Additional charges on goods imposed by traders that were not mentioned earlier.
• Traders selling adulterated or defective goods.
• Traders use faulty weights to cheat the customers.