Consumer issues

No government, no global nonprofit, no multinational enterprise can seriously claim to be able to replace the 1.8 billion jobs created by the economic underground. In truth, the best hope for growth in most emerging economies lies in the shadows.

—Global Bazaar, Scientific American

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, such as the United States, customers may be charged with a criminal offense if they knowingly participate in the black economy, even as a consumer;
• They may have a moral dislike of black marketing;
• In some jurisdictions (such as England and Wales), consumers found to be 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 will not usually face criminal prosecution, they are still left without the goods they paid for and with little if any recourse to get their money back. This risk may make 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 limited situations, consumers conclude that they are actually better off using black market services, particularly when government regulations 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.