Consumer exploitations is a situation in which a consumer in cheated or given false information by the producer. The factors which causes exploitation of consumers are
(i) Limited information Consumers have limited
information about their rights and duties. Therefore, they get exploited by dishonest sellers.
(ii) Low Literacy and awareness The lack of knowledge about the quality or prices of various products or illiteracy causes exploitation of consumers.
(iii) Limited competition Markets do not work in a fair manner when producers are few and powerful and consumer and scattered and purchase less.