Addressing consumer resistance

LAHORE: One method to regulate prices is through consumer resistance, which typically emerges in response to unfair business practices, exploitative pricing, or harmful products. However, in Pakistan, such resistance is notably absent despite the prevalence of these issues.

In countries where consumer resistance is active, buyers tend to reduce their purchases of items they perceive as unjustly expensive. This decreased demand helps normalize prices.

Consumer resistance organizations often address factors driving up prices, such as currency depreciation, inflation, and increased production costs due to higher energy, power, and labour rates. They actively oppose arbitrary price hikes caused by cartels, monopolies, or hoarding.

Pakistan has only a few consumer protection organizations, and their efforts are generally limited to issuing press statements. There is little attempt to mobilize consumers to avoid purchasing unfairly priced products. Instead, when prices of items, particularly food, rise, consumers tend to buy more than necessary, leading to actual shortages and further price increases.

Consumer resistance movements have a rich history and have manifested in various forms around the world. Chicago, for instance, was a key centre for labour movements in the late 19th and early 20th centuries, with events like the Pullman Strike of 1894 and the Haymarket Affair of 1886 highlighting broader consumer issues. In the early 20th century, US consumer activism gained momentum, particularly in food safety, leading to the establishment of the FDA.

Consumer resistance has played a crucial role in creating regulatory bodies that oversee product safety, food and drug standards, and fair business practices.

This resistance has pressured companies to adopt better practices, including more ethical sourcing, improved labour conditions, and operational transparency. It also educates people about their rights and helps foster a more informed consumer base capable of making better purchasing decisions.

However, consumer resistance is less effective for essential goods like food, especially during shortages. When staples such as wheat or rice are scarce, consumers often have limited choices and may have to accept higher prices or seek alternatives.

In some situations, this resistance can lead to black markets as people try to obtain scarce goods. While government interventions like price controls may arise in response to consumer pressure, these measures are often temporary and can lead to unintended consequences.

In Pakistan, where a large portion of the population is impoverished and lacks a strong voice, consumer resistance faces significant obstacles.

These communities often lack the resources and organizational capacity needed for effective resistance, and governments and corporations may not address their concerns adequately.

To overcome these challenges, building local grassroots movements that focus on specific issues can help amplify the voices of the poor. Community organizing, education, and forming alliances with NGOs or international organizations can strengthen these efforts. Social media and digital platforms can also be powerful tools for mobilizing resistance and raising awareness, even in marginalized communities.

While consumer resistance has the potential to drive meaningful change, its effectiveness depends on the context and the issues at hand.

In situations of scarcity and poverty, a comprehensive approach that includes grassroots organizing, policy advocacy, and international support is often necessary to achieve lasting impact.