Q. 224.8( 4 Votes )
How does exploitation of consumers take place in the market? Explain any five facts. [CBSE 2014]
1. Large companies with huge wealth, power and reach often manipulate the markets by establishing their monopoly (The single producer of a particular product in the market). Providing with false information, they try to indulge in unethical and corrupt practices.
2. Exploitation in the marketplace happens in various ways. For example- traders, sometimes, indulge in unfair practices - shopkeepers weigh less than what they should or traders add charges, not mentioned before.
3. Hoarding, black marketing, adulteration of food especially in case of edible oils is rampant. In addition, the selling of goods with poor quality and standards is very common, wherein the shopkeepers indulge in malpractices just to clear their stocks. For example – selling of expired medicines.
4. Many times, false information is also passed on through the media, and other sources, with the only purpose of attracting consumers. For example- a company for years sold powder milk for babies all over the world, describing it, as the most scientific product and claiming it to be even better than the mother’s milk. It took years of struggle before the company was eventually forced to accept that it had been making false claims.
5. In another instance, a long battle had to be fought with court cases to make cigarette- manufacturing companies accept that their product caused cancer.
NOTE - Consumers are often exploited in the marketplace because of manipulation by companies at various points in time. The various ways are specified in the answer above along with examples. Students can also add on any latest examples or recent incidents if they know any.
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