Question

Sargam adviced Sarah to check hallmark while purchasing gold as it is safe to buy hallmark gold. She explained Sarah about consumer exploitation. Explain what is consumer exploitation with examples.

Answer 1

Consumer exploitation means harming the interests of consumers in various ways. When consumers do not get value for their money due to dishonesty on the part of traders and/or manufacturers, consumer exploitation takes place.

Consumers are exploited in several ways, such as the following:

1. Overcharging: Overcharging occurs when businesses or sellers set prices for goods or services that are significantly higher than their fair value or market rates. This practice takes advantage of consumers’ lack of information about the actual cost of the product or service and their willingness to pay more due to limited alternatives or urgent needs.
2. Underweighing: Underweighing is a form of consumer exploitation where sellers intentionally provide customers with less quantity or weight of a product than what they have paid for. Consumers may not always notice the discrepancy immediately, and unscrupulous sellers take advantage of this to maximize their profits.
3. Adulteration: Adulteration is the act of adding inferior, harmful, or cheaper substances to a product, compromising its quality and safety. For example, adding substances like horse dung in dhania powder, water in milk, or impurities in medicines are common forms of adulteration.