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 and traders are organized and powerful

3 Spurious Goods There is increasing supply of duplicate products It is very difficult for 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 are misled by false advertisement and do not know the real quality of advertised goods A mechanism is needed to prevent misleading advertisements

5 Malpractices of Businessmen Fraudulent unethical and monopolistic trade practices on the part of businessmen lead to exploitation of 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 societys 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 1048715 Underweight and Under-measurements The goods being sold in the market aresometimes not measured or weighedcorrectly1048715 Sub-standard Quality The goods soldare sometimes of sub-standard qualitySelling of consumables beyond their expirydates and supply of deficient or defectivehome appliances are generally theregular grievances of consumers1048715 High Prices Very often the traders chargea price higher than the prescribed retailprice1048715 Duplicate Articles In the name ofgenuine parts or goods fake or duplicateitems are being sold to the consumers1048715 Adulteration and Impurity In costly edible

items such as oil ghee and spicesadulteration is made in order to earnhigher profits This causes heavy loss tothe customers they suffer from monetaryloss as well as spoil their health1048715 Lack of Safety Devices Electronic goodselectrical devices or other appliancesproduced locally lack the requiredinbuilt safeguards This causes accidentsto the consumers1048715 Artificial Scarcity In order to amassillegitimate profit businessmen createartificial scarcity by hoarding They sellit at the later stage at higher prices1048715 False or Incomplete Information Sellerseasily mislead consumers by givingwrong information about a product itsprice quality reliability life cycle expirydate durability its effect on healthenvironment safety and securitymaintenance costs involved and termsand conditions of purchase Cosmeticsdrugs and electronic goods are commonexamples where consumers face suchproblems1048715 Unsatisfactory after-sale Service Manyof the high cost durable items such aselectrical or electronic equipments homeappliances and cars need adequateafter-sale care The suppliers do notprovide the satisfactory after -saleservices despite the necessary payments1048715 Rough Behaviour and Undue Conditions In matters like LPG gas connection fixingof a new telephone line procurement oflicensed items etc consumers are oftenharassed and undue conditions are putbefore them

• What are the causes of consumer exploitation

items such as oil ghee and spicesadulteration is made in order to earnhigher profits This causes heavy loss tothe customers they suffer from monetaryloss as well as spoil their health1048715 Lack of Safety Devices Electronic goodselectrical devices or other appliancesproduced locally lack the requiredinbuilt safeguards This causes accidentsto the consumers1048715 Artificial Scarcity In order to amassillegitimate profit businessmen createartificial scarcity by hoarding They sellit at the later stage at higher prices1048715 False or Incomplete Information Sellerseasily mislead consumers by givingwrong information about a product itsprice quality reliability life cycle expirydate durability its effect on healthenvironment safety and securitymaintenance costs involved and termsand conditions of purchase Cosmeticsdrugs and electronic goods are commonexamples where consumers face suchproblems1048715 Unsatisfactory after-sale Service Manyof the high cost durable items such aselectrical or electronic equipments homeappliances and cars need adequateafter-sale care The suppliers do notprovide the satisfactory after -saleservices despite the necessary payments1048715 Rough Behaviour and Undue Conditions In matters like LPG gas connection fixingof a new telephone line procurement oflicensed items etc consumers are oftenharassed and undue conditions are putbefore them

• What are the causes of consumer exploitation