Explain the various ways by which the consumers are exploited by the producers or wholesalers?

A consumer is any person who consumes and receives satisfaction by paying the value for purchasing any commodity. The consumer can be a consumer of goods or a consumer of services. The situation in which the buyers do not receive the benefits and services according to the buyer's value or the situation in which the sellers receives or charges the value of commodities higher than its value is known as consumer exploitation. Consumer exploitation can be made in many different ways in such major ways are being discussed:

a. Hoarding

Consumer exploitation is taking advantage of consumers. The term "hoarding" may include the practice of obtaining and holding resources to create artificial scarcity, thus reducing the supply, to increase the price, so that they can be sold to customers for profit.

b. Black marketing

The black market is the strategy used by the seller to sell the commodity higher by creating artificial scarcity. This is a market place which takes place outside the government-sanctioned channel.

c. Adulteration

It is the process of mixing or substituting identical and undesirable materials in the food items. This will cause heavy loss to the consumers and also leads to many diseases while consuming undesirable commodities. For example Mixing of bricks powder in chilli powder, because both are identical and the consumer cannot differentiate it.

d. False claim

Sellers make a false claim about the performance and quality of their product through advertisements. This false claim may attract consumers who are not aware of the original quality of the product.

e. Under measurement

Sellers generally give under measured goods and charge for the actual quantity. This quantity reduction will increase the profit of the sellers but exploit the consumers.