Question

How are consumers exploited in the market place? Explain with three examples.

Answer 1

The factors which cause exploitation of consumers in the market place are: 

• Limited information. For taking a correct decision and choice about a product, a consumer needs full information about the price, quality, durability, composition, date of manufacture and expiry, ingredients etc. In the absence of full information, a consumer may get exploited in an easy way
• Limited competition. When there is a limited competition with regard to production, i.e., when producers are few and can control and restrict the supply of a product, there is possibility of manipulation of prices. 
• Limited supply. When supply of a good is less than its demand, the prices may go up and encourage the tendency of hoarding. As a result, the consumer may be exploited. 
• Adulteration. It means mixing or substituting undesirable materials in the food. It causes a heavy loss to the consumers both monetary and healthwise. 
• Hoarding and black-marketing. Traders hold the stock of essential commodities to create artificial scarcity in the market, so that they can sell the commodities at higher prices.
• Under measurement. Traders usually indulge in malpractices like giving under measured goods and charge for the actual quantity. 
• Sub-standard goods. In the name of genuine parts or goods, sub-standard or inferior goods are sold in the market. 
• For example, duplicate medicines can be injurious to the health of a person. Defective electrical items without safety measures can be fatal for the user.