monopolies and restrictive trade practice act

1. Monopolistic and restrictive trade practice act

2. • THEMONOPOLISTICANDRESTRICTIVETRADE
PRACTICEACT,1969,WASENACTEDTOENSURE
THATTHEOPERATIONOFTHEECONOMICSYSTEM
DOESNOTRESULTINTHECONCENTRATIONOF
ECONOMICPOWERINHANDSOFFEW.
• THEACTCAMEINTOFORCEFROM1ST JUNE,1970,ANDHAS
BEENAMENDEDIN1991.

3. MONOPOLISTICTRADE PRACTICES
Itmeansinordertomaximizeprofitandtoincrease
marketpower,certainbusinessfirmsunreasonablycharge
highpricestopreventcompetitionintheproduction&
distributionofgoodsbyadoptingunfairtradepractices.
Itisatradepracticewhichrepresentstheabuseofthe
marketpowerbychargingunreasonablyhighprices.

4. REGULATIONOF MrTP
• Regulationofproductionandfixingthetermofsale.
• Prohibitinganyactionthatrestrictscompetition.
• Fixingstandardsforgoodsproduced.

5. RESTRICTIVE TRADE PRACTICES
 Atradepracticewhichrestrictsorreducescompetition
maybetermedasRestrictiveTradePracticesanditharm
theconsumerinterest.
Becauseoftheiradverseeffectontheconsumerandpublic
interest,theyaresoughttoberegulatedinalmostevery
countryoftheworld.

6. UNFAIR TRADE PRACTICE
Atradepracticewhich,forthepurposeofpromotinganysale,useorsupplyofany
goodsorservices,adoptsunfairmethod.
Thesearecategorizedas:
 FalseRepresentation
 FalsePriceorBargainPrice
 FreegiftsofferandPrizeSchemes
 Non-complianceofPrescribedStandards
 Hoarding,Destructionetc.

7. 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

8. 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

9. 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

10. NON-COMPLIANCE OF
PRESCRIBED 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

11. 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

12. REMEDIES UNDER THE ACT
 Temporary Injunction
 Compensation

13. THANK YOU…!!!
DONE BY:
SANGEETHA.P
REKHA.M