Professional Documents
Culture Documents
SECTION : RR1902
INDEX
S.NO. TOPIC PAGENO.
1 DEFINITION OF UNFAIR TRADE 6-7
PRACTICE
2 CATEGORIES OF UNFAIR TRADE 7-10
PRACTICES
3 INQUIRY INTO UNFAIR TRADE 10
PRACTICES
14 ANALYSIS OF CASE 2 18
15 CASE 3 - Low-cost carrier Spicejet, 19-20
anniversary.
16 ANALYSIS OF CASE 3 21
17 CASE 4 - ABN Amro Bank to pay up for 22
unfair trade practice
18 ANALYSIS OF CASE 4 23
19 ANALYSIS OF CASE 5 25
21 ANALYSIS OF CASE 6
ACKNOWDLEGEMENT
I am highly obliged and thankful to my teacher
Mrs. Shelly to give me a topic to research, which has
helped me comprehend the application of the
Corporate Business Law being practiced and its
impact on day to day operations of the in respect of
the real corporate world, in relation to Unfair Trade
Practices carried on in different Indian Companies.
The original MRTP Act dealing with restrictive trade practices was
supplemented by the amendment of 1984 by adding Part B to it. This
part is designed to deal with Unfair Trade Practices. The same set of
provisions has also been included in Section 2(1)(r) of the Consumer
Protection Act, 1986.
Section 36-A explains that “Unfair Trade Practice” means for
the purposes of the Act. The main purpose of the provisions is to afford
some measure of protection to the ultimate consumers of goods or uses
of services. The consumer must get what he is told he is getting. Where,
by any method whatsoever, a belief is created in the minds of consumers
as to some quality or utility of goods or services, and the goods actually
fall short of those standards, this will be unfair to consumers. As the part
of the statutory framework of the consumer protection programme,
such a method has been regarded by the Act as an Unfair Trade Practice.
Such methods are listed in the section. The section says that where the
methods stated in the section are adopted for the purpose of promoting
the sale, use or supply of any goods or for the provision of any services
and thereby some loss or injury is cause to the consumer is achieved by
eliminating or restricting competition or otherwise.
This is so because the primary theme of the provision is to
protect the consumer from the business community. The provision
become necessary because the provision of the contract act 1872
relating to fraud and misrepresentation and those of the Sale of Good
Act, 1930 relating to conditions and warranties have not been able to
6 LOVELY PROFESSIONAL UNIVERSITY MGT518
COMPANY LAW December 3, 2009
1. FALSE REPRESENTATION
The practice of making any oral or written statement or verbal representation
which:
Materially misleads about the prices at which such goods or services are
available in the market; or
-The price which any person coming across the advertisement would
believe to be better than the price at which such goods are ordinarily sold.
Offering any gifts, prizes or other items along with the goods when the
real intention is different, or
Offering some prizes to the buyers by the conduct of any contest, lottery
or game of chance or skill, with real intention to promote sales or
business.
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 -
LOSS OR DAMAGE-
It is not necessary for restraining an unfair trade practice that the
complainant should have suffered some loss, damage or prejudice.
Such consequences can be compensated in addition to the cease and
desist order.
INQUIORY BY COMMISSION-
The commission can start an inquiry into an alleged unfair trade practice
in the following cases-
1. On receiving a complaint by any trade or consumers association
having a membership of atleast 25 persons or from 25 or more
consumers, the complaint should state the facts.
2. On receiving a reference from the central or any state government.
3. On receiving an application from the director general.
4. upon its own knowledge or information
Where a complaint is made by consumers or a consumers organisation,
the commission is required by Section 36 C, before proceeding against
anybody to ask director general to conduct a preliminary investigation
ENFORCEMENT OF ORDERS-
Temporary injunctions issued by the commission under Section 12 A
and a decree for compensation under Section 12B are enforceable in
the same manner as if it were a decree passed by a civil court. If the
commission finds that it is not able to execute its orders it may refer
them to the civil court having jurisdiction over the undertaking or the
persons against whom the order is passed.
ANALYSIS OF CASE 1 –
EFFECT ON ORGANISATION-
ANALYSIS OF CASE 2 –
EFFECT ON ORGANISATION-
In the case, Spicejet did not adopt fair method for booking
tickets while providing its anniversary offer of Rs 99 a seat
through internet.
ANALYSIS OF CASE 3 –
EFFECT ON ORGANISATION-
ANALYSIS OF CASE 4 –
ANALYSIS OF CASE 5 –
First the Dairy Milk came with their campaign – “Celebrate Month's 1st
day with Dariy Milk.” Then as an competitors dilemma-
Nestle Munch have come up with this reply punch – “One can eat
Munch even on 2nd, 3rd and everyday of a month”
Nestlé, the country’s largest food products company, has come out with
a new campaign for Munch, its price warrior in the market. That it takes
off from the clutter-breaking Cadbury Dairy Milk ad which builds on
celebrations around payday in small town India is very clear. “Aaj pehli
tarikh hai,” (Today is the first day of the month) goes the jingle in the
Cadbury advertisement.
To which munch reply “Khao bina tareekh dekhe,” (Eat without looking
at the date) intones the voiceover. “That’s why mera crunch mahan (my
crunch of Munch is so great).” In the last shot, the cuckoo reappears
from the recess in the clock to say the 12th day of the month will fall
next week. That its tongue hangs out and eyes are laden with boredom
are hard to miss.
ANALYSIS OF CASE 6 –
BIBLIOGRAPHY
1. WWW.indiabroadband.net)....)sify broadband
2. WWW.iprindia .net/faq/faq/.htm
3. www.sebi.gov.in/acts/futpfinal.html
4. www.expressindia.com
5. www.helpline.com
6. www.flipkart.com
7. WWW.mouthshut.com
8. WWW.vakilno1.com
9. WWW.infibeam.com
10. www.business-standard.com
11. BOOK,Legal Aspects of Business-by
AKHILESHWAR PATHAK