Question

State and explain any three reasons why consumers are exploited by retailers or producers.

Answer 1

• Illiteracy: One of the major causes of consumer exploitation is illiteracy. A lack of education reduces consumers’ awareness about products, prices, and market conditions, making them more vulnerable to unfair practices.
• Shortage of goods and services: When goods and services are not available in sufficient quantities, consumers are often exploited. Scarcity encourages hoarding and leads to an increase in prices.
• Advertisements: Many consumers are easily influenced by attractive advertisements and fail to check the quality of the products. As a result, they buy such goods and later regret their purchase.