Question

How are consumers exploited by producers and retailers?

Answer 1

The manners /ways in which producers or retailers exploit the consumer are as follows:

1. Deceptive Pricing: Retailers frequently use creative means to charge their clients expensive costs that exceed the MRP, which drives up costs. For example, oxygen cylinder sellers artificially increased prices during the COVID-19 lockdown in order to profit more by selling them at prices higher than their usual price.
2. Adulteration: Numerous manufacturers and merchants take advantage of consumers by combining low-quality products with premium products and charging them exclusively for premium-quality goods.
3. Deceptive advertising: Producers and retailers frequently use deceptive advertising techniques, like making false promises concerning the advantages of the product or its functionality, to entice customers to buy their goods.
4. False weights and measurements: Retailers frequently use false weights and measurements in order to give customers smaller quantities at full price. For example, a fruit vendor charges a customer ₹100 for 1 kg of oranges, but only supplies him with 900 g. As a result, even though he saved 100g, the customer still lost out because he charged them ₹100.
5. Monopolistic Practices: Many monopolistic producers of a certain good raise prices or provide worse quality to the customers, since there isn't a substitute.