causes of consumer exploitation in history
Answers
Answer:
1. Illiteracy and Ignorance: Consumers in India are mostly illiterate and ignorant. They do notunderstand their rights. A system is required to protect them from unscrupulous businessmen.
2. Unorganised Consumers: In India consumers are widely dispersed and are not united. Theyare at the mercy of businessmen. On the other hand, producers and traders are organized andpowerful
.3. Spurious Goods: There is increasing supply of duplicate products. It is very difficult for anordinary consumer to distinguish between a genuine product and its imitation. It is necessaryto protect consumers from such exploitation by ensuring compliance with prescribed norms of quality and safety.
4. Deceptive Advertising: Some businessmen give misleading information about quality, safetyand utility of products. Consumers are misled by false advertisement and do not know the realquality of advertised goods. A mechanism is needed to prevent misleading advertisements.
5. Malpractices of Businessmen: Fraudulent, unethical and monopolistic trade practices on thepart of businessmen lead to exploitation of consumers. Consumers often get defective, inferiorand substandard goods and poor service. Certain measures are required to protect theconsumers against such malpractices.
6. Freedom of Enterprise: Businessmen must ensure satisfaction of consumers. In the longrun, survival and growth of business is not possible without the support and goodwill of consumers. If business does not protect consumers' interests, Government intervention andregulatory measures will grow to curb unfair trade practices.
7. Legitimacy for Existence: Business exists to satisfy the needs and desires of consumers.Goods are produced with the purpose of selling them. Goods will, in the long run, sell onlywhen they meet the needs of consumers.8. Trusteeship: Businessmen are trustees of the society's wealth. Therefore, they should usethis wealth for the benefit of people.