Professional Documents
Culture Documents
• To ensure that the operation of the economic system does not result in the
concentration of economic power in hands of few,
• To provide for the control of monopolies, and
• To prohibit monopolistic and restrictive trade practices.
The MRTP Act extends to the whole of India except Jammu and Kashmir.
Unless the Central Government otherwise directs, this act shall not apply to:
a. Any undertaking owned or controlled by the Government Company,
b. Any undertaking owned or controlled by the Government,
c. Any undertaking owned or controlled by a corporation (not being a company
established by or under any Central, Provincial or State Act,
d. Any trade union or other association of workmen or employees formed for their
own reasonable protection as such workmen or employees,
e. Any undertaking engaged in an industry, the management of which has been
taken over by any person or body of persons under powers by the Central
Government,
f. Any undertaking owned by a co-operative society formed and registered under
any Central, Provincial or state Act,
g. Any financial institution.
Any sale or supply of goods, for use by consumers, knowing or having reason to believe
that the goods do not comply with the standards prescribed by some competent
authority, in relation to their performance, composition, contents, design, construction,
finishing or packing, as are necessary to prevent or reduce the risk of injury to the
person using such goods, shall amount to an unfair trade practice.
5.HOARDING, DESTRUCTION, ETC.
Any practice that permits the hoarding or destruction of goods, or refusal to sell the
goods or provide any services, with an intention to raise the cost of those or other
similar goods or services, shall be an unfair trade practice.
INQUIRY INTO UNFAIR TRADE PRACTICES
The Commission may inquire into
Any unfair trade practice
• Upon receiving a complaint from any trade association, consumer or a registered
consumer association, or
• Upon reference made to it by the Central Government or State Government
• Upon an application to it by the Director General or
• Upon its own knowledge or information.
RELIEF AVAILABLE
After making an inquiry into the unfair trade practice if the Commission is of the opinion
that the practice is prejudicial to the pubic interest, or to the interest of any consumer it
may direct that –
• The practice shall be discontinued or shall not be repeated;
• The agreement relating thereto shall be void in respect of such unfair trade
practice or shall stand modified.
• Any information, statement or advertisement relating to such unfair trade practice
shall be disclosed, issued or published as may be specified
• The Commission may permit the party to carry on any trade practice to take
steps to ensure that it is no longer prejudicial to the public interest or to the
interest of the consumer.
However no order shall be made in respect a trade practice which is expressly
authorised by any law in force.
The Commission is empowered to direct publication of corrective advertisement and
disclosure of additional information while passing orders relating to unfair trade
practices.
MONOPOLISTIC TRADE PRACTICES
A monopolistic trade practice is one, which has or is likely to have the effect of:
i. maintaining the prices of goods or charges for the services at an
unreasonable level by limiting, reducing or otherwise controlling the production,
supply or distribution of goods or services;
ii. unreasonably preventing or lessening competition in the production, supply
or distribution of any goods or services whether or not by adopting unfair method
or fair or deceptive practices;
iii. limiting technical development or capital investment to the common
detriment;
iv. deteriorating the quality of any goods produced, supplied or distribute; and
v. increasing unreasonably -
a. the cost of production of any good; or
b. charges for the provision, or maintenance,of any services; or
c. the prices for sale or resale of goods; or
d. the profits derived from the production, supply or distribution of any goods
or services.
A monopolistic trade practice is deemed to be prejudicial to the public interest, unless it
is expressly authorized under any law or the Central Government permits to carry on
any such practice.
INQUIRY INTO MONOPOLISTIC TRADE PRACTICES
The Commission may inquire into
Any monopolistic trade practice,
• Upon a reference made to it by the Central Government or
• Upon an application made to it by the Director General or
• Upon it own knowledge or information
RELIEF AVAILABLE
a. Where the inquiry by the Commission reveals that the trade practice inquired into
operates or is likely to operate against public interest, the Central Government
may pass such orders as it thinks fit to remedy or present any mischief resulting
from such trade practice.
b. On an inquiry report of the Commission, the Central Government may-
i. Prohibit the owner(s) of the concerned undertaking(s) from continuing to
indulge in a monopolistic trade practice; or
ii. Prohibit the owner of any class of undertakings or undertakings generally,
from continuing to indulge in any monopolistic trade practice in relation to
the goods or services.
c. The Central Government may also make an order:
i. Regulating the production, storage, supply, distribution, or control of any
goods or services by an undertaking and fixing the terms of their sale
(including prices) or supply;
ii. Prohibit any act or practice or commercial policy which prevents or
lessens competition in the production, storage, supply or distribution of
any goods or services;
iii. Fixing standards for the goods used or produced by an undertaking;
iv. Declaring unlawful the making or carrying out of the specified agreement;
v. Requiring any party to the specified agreement to determine the
agreement within the specified time, either wholly or to specified extent;
vi. Regulating the profits which may be derived from the production, storage,
supply, distribution or control of any goods or services; or
vii. Regulating the quality of any goods or services so that their standard does
not deteriorate