Causes of Consumer Exploitation

Consumer exploitation refers to situations where consumers are taken advantage of by sellers or service providers. This can occur due to various reasons, but one of the primary causes is low literacy among consumers.

Low Literacy:
- Limited Understanding: Consumers with low literacy levels may have difficulty understanding complex contracts, product labels, or terms and conditions. This lack of understanding can make them vulnerable to exploitation as they may not fully comprehend the implications of their purchases.
- Inability to Compare Prices: Low literacy levels can also hinder consumers' ability to compare prices and make informed decisions. They may not be able to identify the best deals or recognize when they are being overcharged.
- Lack of Awareness: Consumers with low literacy may have limited knowledge about their rights and the available consumer protection laws. This lack of awareness makes it easier for unscrupulous sellers to deceive or exploit them.

Other Factors:
While low literacy is a significant factor contributing to consumer exploitation, it is not the only cause. Other factors that can contribute to consumer exploitation include:

- Information Asymmetry: When sellers possess more information than consumers, such as knowledge about product quality or pricing, it creates an imbalance of power. This information asymmetry can lead to consumers being exploited.

- Lack of Proper Supply: Inadequate supply of goods and services can lead to increased competition among consumers, making them more susceptible to exploitation. Sellers may take advantage of the limited options available and charge higher prices or provide substandard products.

- Lack of Enforcement: Weak consumer protection laws or ineffective enforcement mechanisms can also contribute to consumer exploitation. If there are no strict regulations or penalties for fraudulent practices, sellers may engage in exploitative behavior without facing repercussions.

Conclusion:
While multiple factors can contribute to consumer exploitation, low literacy levels among consumers play a significant role. Improving literacy rates and consumer education can empower individuals to make informed decisions, understand their rights, and protect themselves from exploitation. Additionally, strengthening consumer protection laws and ensuring their effective enforcement are crucial for preventing consumer exploitation and promoting a fair marketplace.

Correct answer is Option C...