How does exploitation of consumers take place in the market? Explain with any five facts.
Answers
We buy a variety of goods and services in our day to day life and derive satisfaction from its consumption and use. Thus we all are consumers, and as a consumer, we expect a certain value for money, that is, right quality, right quantity, right prices, information about the product, etc.
However, in the present day, we end up being harassed and cheated by market giants very often.
In early days, unfair trade was almost impossible with limited wants and a conservative style of living. However, today, with increased industrial revolution, liberalisation and globalisation, our wants have increased manifold and this has given plenty of scope for malpractices.
There are many ways by which consumers are exploited. A few of them are:
A. Selling at higher prices -- The price charged for the product will not be proportionate to the quality;
B. Product risk -- Drugs that are hazardous, banned or beyond expiry date, electrical appliances with inadequate safety precautions, etc;
C. Adulteration -- This is very common in food items and could prove to be highly injurious to one's health;
D. Sub-standard Products -- Items whose quality is far below the required standard;
E. False Claims -- Manufacturers make false representations about their products in the media with a view to mislead the consumers. Claiming that use of a particular oil will cure baldness, using a company's fairness cream for a specific period will make one fair, etc., are all typical examples of exaggerated, misleading advertisements; and
F. Warranty/Annual Maintenance Contract -- In many cases, though the product will have a warranty or will be under annual maintenance contract (AMC), when a problem arises, the consumer is told that certain parts will not be covered and they will have to pay.
A consumer is said to be exploited when he/she is cheated by the producer or trader into buying lower quality or adulterated goods for more money.
A consumer can be exploited in the following ways :
(i) Shopkeepers weigh certain products lesser than they should. They may weigh only 7 kg and charge money for 10 kg.
(ii) Sometimes traders add hidden charges.
(iii) The shopkeeper may sell defective and/or adulterated goods.
(iv) False information is given to attract consumers.
For example, a company claimed that its powder milk was scientifically proven to be beneficial for babies and sold it in the market for years. However, it was later discovered that those were false claims and that the powder milk had never been certified by experts.
(v) Traders and producers might sometimes hoard goods and create an artificial scarcity in the market and then sell those hoarded goods at higher prices.