question_answer

Examine the main factors responsible for the exploitation of consumers in India.                                 [AI 2005]

Answer:

Factors which cause exploitation of consumers are:

(i) Limited Information: For a correct decision and choice about a product, a consumer needs full information about the price, quality, durability, composition, etc. of the product. In the absence of full and correct information, a consumer may get exploited.

(ii) Limited Supplies: When the supply of goods is less than their demand, the prices may go high and may also encourage the tendency of hoarding. As a consequence, consumers will get exploited.

(iii) Limited Competition: When there is limited competition with regard to production, i.e. when producers are few and can control and restrict the supply of a product, there is possibility of manipulation in prices.

(iv) Low Literacy: Illiteracy causes ignorance which leads to exploitation of consumers. The level of awareness in our country is generally low.