How are the consumers exploited in the market place? Explain.
How does exploitation of consumers take place in the market? Explain with any five facts.
A consumer is said to be exploited when he/ she is cheated by the producer or trader into buying lower quality or adulterated goods for more money. A consumer can be exploited in the following ways:
1. Shopkeepers weigh certain products lesser than they should. They may weigh only 7 kg and charge money for 10 kg.
2. Sometimes traders add hidden charges.
3. The shopkeeper may sell defective and/or adulterated goods.
4. False information is given to attract consumers. For example, a company claimed that it's powder milk was scientifically proven to be beneficial for babies and sold it in the market for years. However, it was later discovered that those were false claims and that the powder milk had never been certified by experts.
5. Traders and producers might sometimes hoard goods and create an artificial scarcity in the market and then sell those hoarded goods at higher prices.
Consumers are exploited in the following ways:
i. Sale of adulterated goods, i.e. addition of inferior substances to the product being sold. Costly goods such ghee, spices and oil are adulterated to earn higher profits. This causes monetary loss to consumers and spoils their health.
ii. Sale of sub-standard goods, i.e. sale of goods which do not confirm to the prescribed quality standards. Selling of medicines beyond their expiry dates and supply of defective home appliances are the general grievances of consumers.
iii. Use of false weights and measures leading to losses. The goods sold in the market are sometimes not measured correctly.