Which of the following statements about widespread exploitation of consumers is incorrect?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Consumers might be exploited by unfair trade practices like unsafe products and punitive damages.
Option (1) Consumers might be exploited by unfair trade practices like adulteration and hoarding. — True. Adulteration and hoarding are unfair trade practices by which sellers exploit consumers.
Option (2) Consumers might be exploited by false and misleading advertising and black-marketing. — True. False and misleading advertising and black-marketing are also exploitative practices.
Option (3) Consumers need protection against the malpractices of sellers. — True. Consumers need protection against such malpractices of the sellers.
Option (4) Consumers might be exploited by unfair trade practices like unsafe products and punitive damages. — False. Unsafe products are an unfair practice, but punitive damages are a relief. A consumer commission may order a seller to pay them in suitable cases, as a punishment. So they protect the consumer; they do not exploit him.
NCERT (2026-27 Edition): “(iii) Widespread Exploitation of Consumers: Consumers might be exploited by unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black-marketing, etc. Consumers need protection against such malpractices of the sellers.” “Relief Available Where District or State or National Commission is satisfied about defect in goods, or deficiency in services on any unfair trade practice or claim for compensation under product liability, issues an order: |