There are many factors which are responsible for the exploitation of consumers in India.
They are as follows:
(a) Limited Information:
In a capitalist economy the producers and the sellers are free to produce any goods or services in any quantity and there is no regulation on prices. In that case it is the duty of the producers and sellers to furnish full information about their product to the consumers. In the absence of timely and correct information like the price, quality, composition, terms of purchase, guarantee/warranty etc., and the consumers may make a wrong choice and loose their money.
(b) Limited Supplies:
The consumers are exploited when the goods and services are not available in the market to the required amount or quantity. This makes or gives chance for black marketing & hoarding, of the goods etc.
(c) Limited Competition:
At times only one producer or a group of producers produce some products. So they control the production and supply of certain goods. Thus they manipulate the prices of their products by making these non-available for certain period. So the prices rise high and the benefit goes to that particular group causing loss to the customers.
Illiterate people are very easily exploited by the sellers. Due to low literacy the level of consumer consciousness in our country is very low. It benefits the producers and sellers in keeping the rates of their products high and earns more profit. Thus the consumers are easily exploited.