Monopolistic and restrictive trade practice act

• THE MONOPOLISTIC AND RESTRICTIVE TRADE PRACTICE ACT,1969, WAS ENACTED TO ENSURE THAT THE OPERATION OF THE ECONOMIC SYSTEM DOES NOT RESULT IN THE CONCENTRATION OF ECONOMIC POWER IN HANDS OF FEW.

• THE ACT CAME INTO FORCE FROM 1ST JUNE, 1970, AND HAS BEEN AMENDED IN 1991.

MONOPOLISTIC TRADE PRACTICES

It means in order to maximize profit and to increase market power, certain business firms unreasonably charge high prices to prevent competition in the production & distribution of goods by adopting unfair trade practices.

It is a trade practice which represents the abuse of the market power by charging unreasonably high prices.

REGULATION OF MrTP

• Regulation of production and fixing the term of sale.

• Prohibiting any action that restricts competition.

• Fixing standards for goods produced.

RESTRICTIVE TRADE PRACTICES

A trade practice which restricts or reduces competition may be termed as Restrictive Trade Practices and it harm the consumer interest.

Because of their adverse effect on the consumer and public interest, they are sought to be regulated in almost every country of the world.

UNFAIR TRADE PRACTICE

A trade practice which, for the purpose of promoting any sale, use or supply of any

goods or services, adopts unfair method.

These are categorized as:

False Representation

False Price or Bargain Price

Free gifts offer and Prize Schemes

Non-compliance of Prescribed Standards

Hoarding, Destruction etc.

FALSE REPRESENTATION

• Falsely suggests that the goods are of particular standard quality, grade and composition

• Falsely suggest any re-built good as new one• Makes a misleading representation concerning

for the need for, or the usefulness of, any goods or services

• Gives any warrantee or guarantee to the performance and efficacy of the goods that is not based on proper tests

• A promise to replace until it has achieved a specified result

FALSE OFFER OR BARGAIN PRICE

When an advertisement is published in newspaper, offering goods at a bargain price when in fact there is no such intention that the same may be offered at the same price for reasonable period

FREE GIFTS OFFER AND PRIZE SCHEMES

Offering any gifts along with some other goods when the intention is different Creating an impression that something is offered free when in fact the price is included in the price of article sold Offering some prizes to the buyers by the conduct of any contest with real intention to promise sales

NON-COMPLIANCE OFPRESCRIBED STANDARDS

Any sale or supply of goods, knowing or having reason to believe that the goods do not comply with the standards prescribed by some competent authority

HOARDING,DESTRUCTION ETC.

Any practice of that permits the hoarding or destruction of goods with an intention to raise the cost of those or other similar goods

REMEDIES UNDER THE ACT

Temporary Injunction

Compensation

THANK YOU…!!!

DONE BY:SANGEETHA.P REKHA.M