Legal Definitions - exploitation

Exploitation refers to the act of unfairly using another person or their resources for one's own gain, often by leveraging a position of power, vulnerability, or trust. It involves benefiting from someone else's disadvantage or lack of knowledge in a way that is considered morally or legally wrong.

• Example 1: Financial Exploitation of the Elderly

  A live-in caregiver for an elderly individual with early-stage dementia persuades them to sign over power of attorney and then begins to transfer the elderly person's savings into their own bank account. The caregiver isolates the individual from family members who might intervene.

  This illustrates exploitation because the caregiver is taking unjust advantage of the elderly individual's cognitive vulnerability, isolation, and trust to unfairly benefit financially from their assets.

• Example 2: Labor Exploitation

  A construction company hires migrant workers who do not speak English and are unfamiliar with local labor laws. The company pays them cash wages far below the legal minimum, forces them to work excessive hours without breaks, and threatens to report them to immigration authorities if they complain about the unsafe working conditions.

  Here, the company is exploiting the workers' language barrier, lack of legal knowledge, and vulnerable immigration status to secure cheap labor and maximize profits, taking an unjust advantage of their precarious situation.

• Example 3: Predatory Lending

  A payday loan company targets low-income individuals who need immediate cash, offering short-term loans with extremely high-interest rates and hidden fees. The terms are complex and difficult to understand, leading many borrowers into a cycle of debt where they repeatedly take out new loans to pay off old ones, incurring more fees.

  This demonstrates exploitation because the company is taking unjust advantage of the borrowers' urgent financial need and lack of financial literacy. The loan structure is designed to profit from their vulnerability rather than provide a sustainable solution, trapping them in debt for the company's benefit.