What are the causes of consumer exploitation? 1. Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant. They do not understand their rights. A system is required to protect them from unscrupulous businessmen. 2. Unorganised Consumers: In India consumers are widely dispersed and are not united. They are at the mercy of businessmen. On the other hand, producers producers and traders are organized and powerful. 3. Spurious Goods: There is increasing supply of duplicate products. It is very difficult f or an ordinary consumer to distinguish between a genuine product and its imitation. It is necessary to protect consumers from such exploitation by ensuring compliance with prescribed norms of quality and safety. 4. Deceptive Advertising: Some businessmen give misleading information about quality, safety and utility of products. Consumers Consumers are misled by false advertisement and do not know the real quality of advertised goods. A mechanism is needed to prevent misleading advertisements. advertisements. 5. Malpractices of Businessmen: Fraudulent, unethical and monopolistic trade practices on the part of businessmen lead to exploitation of consumers. Consumers Consumers often get defective, inferior and substandard goods and poor service. Certain measures are required to protect the consumers against such malpractices. 6. Freedom of Enterprise: Businessmen must ensure satisfaction of consumers. In the long run, survival and growth of business is not possible without the support and goodwill of consumers. If business does not protect consumers' interests, Government intervention and regulatory measures will grow to curb unfair trade practices. 7. Legitimacy for Existence: Business exists to satisfy the needs and desires of consumers. Goods are produced with the purpose of selling them. Goods will, in the long run, sell only when they meet the needs of consumers. 8. Trusteeship: Businessmen are trustees of the society's wealth. Therefore, they should use this wealth for the benefit of people.
Some common ways by which consumers are exploited by manufacturers and traders are given below : Underweight and Under-measurements : The goods being sold in the market are sometimes not measured or weighed correctly. Sub-standard Quality : The goods sold are sometimes of sub-standard quality. Selling of consumables beyond their expiry dates and supply of deficient or defective home appliances are generally the regular grievances of consumers. High Prices : Very often the traders charge a price higher than the prescribed retail price. Duplicate Articles : In the name of genuine parts or goods, fake or duplicate items are being sold to the consumers. Adulteration and Impurity : In costly edible
items, such as oil, ghee and spices, adulteration is made in order to earn higher profits. This causes heavy loss to the customers; they suffer from monetary loss as well as spoil their health. Lack of Safety Devices : Electronic goods, electrical devices or other appliances produced locally, lack the required inbuilt safeguards. This causes accidents to the consumers. Artificial Scarcity : In order to amass illegitimate profit, businessmen create artificial scarcity by hoarding. They sell it at the later stage at higher prices. False or Incomplete Information : Sellers easily mislead consumers by giving wrong information about a product, its price, quality, reliability, life cycle, expiry date, durability, its effect on health, environment, safety and security, maintenance costs involved, and terms and conditions of purchase. Cosmetics, drugs and electronic goods are common examples where consumers face such problems. Unsatisfactory after-sale Service : Many of the high cost durable items, such as electrical or electronic equipments, home appliances and cars, need adequate after-sale care. The suppliers do not provide the satisfactory after -sale services despite the necessary payments. Rough Behaviour and Undue Conditions : In matters like LPG gas connection, fixing of a new telephone line, procurement of licensed items, etc., consumers are often harassed and undue conditions are put before them.
