Forms of Consumer Exploitation
Forms of consumer exploitation are disclosed under the Consumer Protection Act, 1986. When someone possesses the right then they should have remedies too, because, many people cheat or deceives many people. In this article, we discussed different ways of consumer exploitation.
Therefore, there is a Latin term “Caveat Emptor” which means “Let the buyer be aware”. When a person has to buy something or avail of the services, then he or she needs to be very careful. Otherwise, people exploit the consumer in many different ways.
However, there are different ways to the exploitation of consumers like convincing consumers, building trust, showing fake products as real, charging high prices etc.
Meaning of Consumer
The Consumer is a person who buys the goods or avail of the services provided by the supplier by paying them in return for goods or services.
Meaning of Exploitation
When a consumer who has been deceived in any way (like fraud, coercion, undue influence, misrepresentation or fake information) or by any person is said to be exploited.
Forms of Consumer Exploitation
Forms of consumer exploitation list have been discussed in this article. Here, we have provided some different types of consumer exploitation listed below;
- Fake Advertisement/Misleading
- Law Literacy
- Lack of Bargaining Power
- Limited Information
- Limited Supplies
- Low Competition
- Irregular Prices Offered
- Lack of Unity
- Cumbersome and time taking legal proceedings
Whenever a product or service shown and disclosed through advertisement is not true and involves false and wrong information about the product or service, the quality of the product and its durability are not always perfect and long-lasting. Showing fake information in the advertisement about the product and service is shown only to attract the customers/consumers and compel the people to buy it. Non-disclosure of reality is a disadvantage.
Every business aims to earn profit and increase their business and to gain profit, they will tend to sell low-quality products which may cause harm in future because of low quality and low-standard products. But, providing or selling low-quality products to gain high revenue is also unethical.
Some sellers have a monopoly on increasing the prices of their products and services. Some sellers have the control in the market to change and increase the price of the goods and services, and due to their monopoly in the market, the consumer and buyers have no choice but to purchase it at a high price.
Adulteration of goods is the worst form of consumer exploitation. Because of the adulteration or mixing of some materials or chemicals in the goods or foods not only causes monetary loss to the buyer/consumer but it will affect the health of the buyer/consumer.
When the sellers mix unwanted materials or chemicals in the goods or foods will affect the health of the buyer and harms the body which may result in different types of diseases for the buyer/consumer for example omitting, food poisoning etc.
The sellers will exploit the buyer/consumer by misleading and providing false information printed on the packet and this false information printed on the packet which is not accurate that misleading the buyer.
The sellers will mislead the consumer by providing false information on the packet with not accurate quantity or not proper price tag etc that will exploit the consumer while buying such products.
Black marketing is another way to exploit the consumer. When there is high demand for a certain good or service, the sellers start stocking the goods and the seller will pretend that the goods or services are scarce due to which the price of the product or service will be increased and due to a shortage of the products the people will buy the product or good even the price of that good or service is hiked than the regular price.
Black marketing is a weapon in the hand of the seller to stock the goods that the people need and when the need for the goods increases, the sellers will sell the goods at a high price than the regular price of it. Black marketing mostly happens with the essential and needy commodities of the people.
You know well about the branding of the goods. There are sellers which manufacture low-quality goods and tag them with the name of branded goods. For example, ‘Adidas’ is a famous brand of shoes and the seller manufactures low-quality shoes which look similar to branded shoes and tags a name like ‘Abidas’. This is the misrepresentation of goods. Selling duplicate and low-quality goods in the name of the branded goods is an unethical practice in the business and that is a method to exploit the buyer/consumer.
Lack of after Sale Services
It is the core duty of the seller towards the consumer to provide after-sale service. Manufacturing and selling of the product is not the only activity that is performed if any consumer faces any kind of problem after using the goods or services then it is the responsibility of the seller that the problems must be heard and shall be solved. This is the after-sale service.
Lack of Information
Every product and service contains information printed on it. The information printed on goods or services like ingredients used, manufacturing date, harm and the consequences of the product etc. It is mandatory for the manufacturer of the goods that the information about the product should be disclosed to the consumers/buyers otherwise they might face problems that will have a negative impact on the market.
Frequently Asked Questions
What are the factors of consumer exploitation?
Forms of Consumer Exploitation 1. Fake Advertisement/Misleading 2. Law Literacy 3. Lack of Bargaining Power 4. Limited Information 5. Limited Supplies 6. Low Competition 7. Irregular Prices Offered 8. Lack of Unity 9. Cumbersome and time taking legal proceedings
What are the six forms of consumer exploitation?
Adulteration, Lack of safety devices, Misleading claims, Under measurement, Duplicate Goods, and Substandard items are the Six forms of consumer exploitation.
Explain Any Five Ways In Which Consumers Are Exploited In The Market?
The five ways in which consumers can be exploited in the market are 1. Supply of defective goods 2. Sale of adulterated goods 3. Use of false weighing scale, machines and other measures using tools 4. Sale of sub-standard or goods that do not conform to the prescribed quality standards 5. Advertisements falsely claim a product or service to be of superior quality, grade or standard
Forms of Consumer Exploitation are provided under the Consumer Protection Act, 1986. An important form of consumer exploitation is discussed in this article. When someone possesses the right then they should have remedies too, because, many people cheat or deceives many people