Underground Economy - Consumer Issues

Consumer Issues

Even when the underground market offers lower prices, consumers still have an incentive to buy on the legal market when possible, because:

• They may prefer legal suppliers, as they are easier to contact and can be held accountable for faults;
• In some jurisdictions, customers may be charged with a criminal offense if they knowingly participate in the black economy, even as a consumer;
• They may feel in danger of being hurt while making the deal;
• They may have a moral dislike of black marketing;
• In some jurisdictions (such as England and Wales), consumers in possession of stolen goods will have them taken away if they are traced, even if they did not know they were stolen. Though they themselves commit no offense, they are still left with no goods and no money back. This risk makes some averse to buying goods that they think may be from the underground market, even if in fact they are legitimate (for example, items sold at a car boot sale).

However, in some situations, consumers can actually be in a better situation when using black market services, particularly when government regulations and monopolies hinder what would otherwise be a legitimate competitive service. For example:

• Unlicensed taxicabs. In Baltimore, it has been reported that many consumers actively prefer illegal taxis, citing that they are more available, convenient, and priced fairly.