Commerce · Ch 16 — Consumerism
Forms of Consumer Exploitation and Unfair Trade Practices
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Forms of Consumer Exploitation and Unfair Trade Practices
Consumer exploitation refers to any practice by which a seller, manufacturer, or service provider takes unfair advantage of a consumer's lack of information, lack of organisation, or weak bargaining position. Some of the most common forms encountered in everyday markets are described below.
| Form of exploitation | What it involves |
|---|---|
| Adulteration | Mixing an inferior, cheaper, or harmful substance into a genuine product (commonly food items, fuel, or medicines) without disclosing it, so as to increase quantity or cut cost while charging the price of the pure product. |
| Underweight / short measure | Supplying less quantity or weight than what is stated on the label or charged for, using tampered weighing scales or deliberately short packaging. |
| False or misleading advertising | Making exaggerated, false, or deceptive claims about a product's quality, effectiveness, origin, or price benefit, inducing a purchase the consumer would not otherwise make. |
| Defective or substandard goods | Selling goods that do not meet the promised or expected quality, safety, or performance standard, including goods that do not conform to prescribed safety standards. |
| Overcharging | Charging a price higher than the maximum retail price (MRP) printed on the product, or higher than the legally or contractually agreed price. |
| Black-marketing | Selling scarce goods secretly at a price far above the controlled or fair price, especially during shortages, bypassing the normal, transparent channel of distribution. |
| Hoarding | Deliberately withholding goods from the market, or storing them in excess of genuine business need, in order to create an artificial scarcity and push prices up. |
| Poor after-sales service | Failing to honour warranty or guarantee commitments, or providing negligent installation, repair, or maintenance service after a sale has been made. |
Definition 1Unfair trade practice
Any trade practice that, for the purpose of promoting the sale, use, or supply of goods or services, adopts deceptive, misleading, or unfair methods that cause lo …
Definition 2Maximum Retail Price (MRP)
The highest price at which a packaged product can legally be sold to the consumer in India, inclusive of all taxes, as p …