Question

Give two reasons for consumer exploitation in India.

State two reasons for consumer exploitation in India.

Mention two causes of Consumer Exploitation.

Give two/three reasons for consumer exploitation in India.

Answer 1

The following are the major reasons that cause exploitation of the consumers:

1. Lack of Information: In a free market economy, producers and sellers are free to produce any goods or services in any quantity and there is no regulation on the prices. In the absence of information about different aspects of the products, namely, price, quality, composition, conditions of use, terms of purchase, etc., the consumers are liable to make a wrong decision and hence lose money.
2. Shortage of Goods and Services: The consumers are exploited when the goods and services are not available in the required quantity or numbers. Limited supplies are a result, usually, of lower production of goods as compared to demand. This gives rise to a tendency of hoarding and price increases.
3. Limited Competition: In some cases, a single producer or a group of producers controls the production and supply of a product. He is in a position to restrict the availability of supplies. There is, thus, a possibility of manipulation in prices and availability.
4. Illiteracy: Illiteracy is one of the major reasons that lead to exploitation of consumers. The level of consumer consciousness in our country is generally low. The level of illiteracy directly affects the level of awareness about products and the markets.
5. Ill-effects of Advertisements: Most of the customers are so attracted by the advertisement of different articles that they do not try to verify the quality of those goods. They buy with lightning speed and often repent afterwards.