Unfair Trade Practice and Restrictive Trade Practice
According to the provisions of the Consumer Protection Act, 1986 ‘unfair trade practice’ means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including the practice of making any statement, whether orally or in writing or by visible representation which falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or model; falsely represents that the services are of a particular standard, quality or grade; falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods; makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services etc. permits the publication of any advertisement whether in any newspaper or otherwise, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price. ‘Bargaining price’ has been defined as a price that is stated in any advertisement to be a bargain price, by reference to an ordinary price or otherwise, or a price that a person who reads, hears or sees the advertisement, would reasonably understand to be a bargain price having regard to the prices at which the product advertised or like products are ordinarily sold.
The Act defines ‘restrictive trade practice’ as a trade practice which tends to bring about manipulation of price or conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price; any trade practice which requires a consumer to buy, hire or avail of any goods or services as condition to buying, hiring or availing of other goods or services.
