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In a capitalist society, the consumer should be king. Even so, there are plenty of ways companies ripconsumers off and treat them poorly. No matter what types of products you buy, you need to be on thelookout for consumer exploitation. Some types of exploitation are small and somewhat insignificant, butother types of exploitation can be quite costly.The following are the forms of consumer exploitation:
Underweight and under measures.
Sub standard quality.
Adulteration of goods
Rough behavior and undue conditions.
Lack of safety devices.
Poor or inadequate after sales service.
Reasons for Consumer Exploitation
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. Unorganized Consumers
: In India consumers are widely dispersed and are not united. They are at themercy of businessmen. On the other hand, producers and traders are organized and powerful.
3. Spurious Goods
: There is increasing supply of duplicate products. It is very difficult for an ordinaryconsumer to distinguish between a genuine product and its imitation. It is necessary to protectconsumers from such exploitation by ensuring compliance with prescribed norms of quality and safety.
4. Deceptive Advertising
: Many advertisements make false promises, are highly exaggerated and giveincomplete descriptions of products. Consumers are misled by false advertisement and do not know thereal quality of advertised goods.
5. Malpractices of Businessmen
: Fraudulent, unethical and monopolistic trade practices on the part of businessmen lead to exploitation of consumers. Consumers often get defective, inferior andsubstandard goods and poor service. Certain measures are required to protect the consumers againstsuch malpractices.