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Consumer exploitation refers to unfair practices used by sellers, manufacturers, or service providers to take undue advantage of buyers. This results in financial loss, mental distress, or both for consumers. Understanding the causes of consumer exploitation is vital for ensuring consumer rights and promoting fair trade practices.
Major Factors Causing Consumer Exploitation
Below is a table highlighting the main factors responsible for consumer exploitation along with a brief explanation:
| Factor | Explanation |
| Lack of Consumer Awareness | Many consumers are unaware of their rights, making them easy targets. |
| False Advertising | Companies often make exaggerated or misleading claims to attract buyers. |
| Unfair Trade Practices | This includes black marketing, hoarding, and selling expired or counterfeit goods. |
| Monopolistic Markets | When one or few companies dominate the market, consumers have limited options. |
| Substandard Goods | Sellers may compromise on product quality while charging high prices. |
| Lack of Regulation Enforcement | Weak enforcement of consumer protection laws leads to unchecked exploitation. |
| Misleading Packaging and Labelling | Consumers are misled by incorrect or hidden information on packaging. |
| Complex Terms and Conditions | Vague or complex clauses in service contracts confuse consumers. |
| Price Discrimination | Charging different prices for the same product or service without justification. |
| Online Frauds and Scams | Increase in e-commerce has led to new forms of consumer deception. |
How to Prevent Consumer Exploitation?
- Consumer Education – Awareness programs and education about consumer rights.
- Government Regulation – Strict enforcement of consumer protection laws.
- Active Consumer Forums – Support from organizations that protect consumer interests.
- Transparency in Transactions – Clear and honest communication by businesses.
- Use of Technology – Digital tools and apps to verify product authenticity and prices.
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