Question

Mention a few factors which cause exploitation of consumers.

Mention two factors which cause exploitation of consumers.

Answer 1

Factors which cause exploitation of consumers are:

1. Lack of Information: When consumers are unaware of their rights, product information, or market alternatives, they may make judgments that are detrimental to their best interests.
2. Advertising and Marketing Tactics: Misleading advertising, inflated promises, and manipulative marketing strategies can influence consumers to make purchasing decisions based on inaccurate or insufficient information.
3. Unfair Contract Terms: Contracts and agreements frequently contain terms that benefit the corporation rather than the customer.
4. Sale of adulterated goods: The sale of substandard or nonconforming items is intended to cheat consumers.

Answer 2

1. Lack of Information: Consumers do not receive full and accurate details about products, such as price, quality, and usage, leading to incorrect decisions and monetary loss.

2. Limited Supplies: When goods and services are scarce due to lower production, hoarding, and price rises exploit consumers.