The MRTP Act, 1969 Post independence, many new and big firms have entered the Indian

market. They had little competition and they were trying to monopolize the market. The Govern ment of India understood the intentions of such firms. In order to safeguard the rights of consumers, Government of India passed the MRTP bill. The bill was pas sed and the Monopolies and Restrictive Trade Practices Act, 1969, came into exis tence. Through this law, the MRTP commission has the power to stop all businesse s that create barrier for the scope of competition in Indian economy. The MRTP Act, 1969, aims at preventing economic power concentration in order to avoid damage. The act also provides for probation of monopolistic, unfair and r estrictive trade practices. The law controls the monopolies and protects consume r interest. Monopolistic Trade Practice Such practice indicates misuse of one's power to abuse the market in terms of p roduction and sales of goods and services. Firms involved in monopolistic trade practice tries to eliminate competition from the market. Then they take advantag e of their monopoly and charge unreasonably high prices. They also deteriorate t he product quality, limit technical development, prevent competition and adopt u nfair trade practices. Unfair Trade Practice The following may result in an unfair trade practice: False representation and misleading advertisement of goods and services. Falsely representing second-hand goods as new. Misleading representation regarding usefulness, need, quality, standard, style e tc of goods and services. False claims or representation regarding price of goods and services. Giving false facts regarding sponsorship, affiliation etc. of goods and services . Giving false guarantee or warranty on goods and services without adequate tests. Restrictive Trade Practice The traders, in order to maximize their profits and to gain power in the market , often indulge in activities that tend to block the flow of capital into produc tion. Such traders also bring in conditions of delivery to affect the flow of su pplies leading to unjustified costs. About the MRTP Act, 1969 The MRTP Act extends to the whole of India except the state of Jammu and Kashmi r. This law was enacted: To ensure that the operation of the economic system does not result in the conce ntration of economic power in hands of few, To provide for the control of monopolies, and To prohibit monopolistic and restrictive trade practices. Unless the Central Government otherwise directs, this act shall not apply to: Any undertaking owned or controlled by the Government Company, Any undertaking owned or controlled by the Government, Any undertaking owned or controlled by a corporation (not being a company) estab lished by or under any Central, Provincial or State Act, Any trade union or other association of workmen or employees formed for their ow n reasonable protection as such workmen or employees,

Any undertaking engaged in an industry, the management of which has been taken o ver by any person or body of persons under powers by the Central Government, Any undertaking owned by a co-operative society formed and registered under any Central, Provincial or state Act, Any financial institution. MRTP Commission and Filing of Complaint For the purpose of this Act, the Central Government has established a commissio n to be known as the Monopolies and Restrictive Trade Practices Commission. This commission shall consist of a Chairman and minimum 2 and maximum 8 other member s, all to be appointed by the Central Government. Every member shall hold the of fice for a period specified by the Central Government. This period shall not exc eed 5 years. However, the member will be eligible for re-appointment. In case of any unfair trade practice, monopolistic trade practice and/or restri ctive trade practice, a complaint can be filed against such practices to the MRT P commission. The procedure for filing a complaint is as follows: Complaint is filed either by the individual consumer or through a registered con sumer organization. The Director General of the MRTP commission would carry on the investigation for finding facts of the case. If the prima facie case is not made, the complaint is dismissed. If the complian t is true, an order is passed to its effect. The commission restricts and restrains the concerned party from carrying on such practices by granting temporary injunction. Then the final order is passed. The complainant may be compensated for his loss.