FACTORS CAUSING EXPLOITATION OF CONSUMERS

In a capitalist economy, producers and sellers are free to produce any goods or services in any quantity and there is no regulation on the prices. In the absence of information about different aspects of the products, namely, price, quality, condition of use, etc., the consumers are liable to make a wrong choice and lose money. Limited Supplies: The consumers are exploited when the goods and services are not available in the required quantity or numbers. This gives us rise to hoarding and price-escalation. Limited Competition: When only one producer or group of producer or a group of persons controls the production and supply of a product, and is in a position to restrict the availability of supplies, there is a possibility of manipulation in prices and availability. Illiteracy: Illiteracy is one of the major drawbacks that lead to the exploitation of consumers.

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