THE MONOPOLIES ANDRESTRICTIVE TRADEPRACTICES (MRTP) ACT, 1969 By : Amit Kumar Giri PGDM Sec.A Roll No. 13 IIMT Professional College
This Act was enacted:• To ensure that the operation of the economic system does not result in the concentration of economic power in the hands of few• To provide for the control of monopolies• To prohibit monopolistic and restrictive trade practices The MRTP Act extends to the whole of India except Jammu and Kashmir
APPLICATION OF THE ACT This Act shall not apply to:• Any undertaking owned or controlled by the Government Company• Any undertaking owned or controlled by a corporation• Any undertaking owned by a co-operative society formed and registered under any Central, Provincial or State Act• Any financial institution
RESTRICTIVE TRADE PRACTICE A restrictive trade practice is a trade practice which:• Prevents, distorts or restricts competition in any manner• Obstructs the flow of capital or resources into the stream of production• Tends to bring about manipulation of prices or conditions
RELIEF AVAILABLE• The practice shall be discontinued or shall not be repeated• The agreement relating thereto, shall be void
UNFAIR TRADE PRACTICE A trade practice which, for the purpose of promoting any sale, use or supply of any goods or services, adopts unfair method. These are categorized as:• False Representation• False Price or Bargain Price• Free gifts offer and Prize Schemes• Non-compliance of Prescribed Standards• Hoarding, Destruction etc.
1. 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
2. FALSE OFFER OR BARGAIN PRICEWhen an advertisement is publishedin newspaper, offering goods at abargain price when in fact there is nosuch intention that the same may beoffered at the same price forreasonable period
3. 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
4. NON-COMPLIANCE OFPRESCRIBED STANDARDSAny sale or supply of goods, knowingor having reason to believe that thegoods do not comply with thestandards prescribed by somecompetent authority
5. HOARDING, DESTRUCTION ETC.Any practice of that permits thehoarding or destruction of goods,with an intention to raise the cost ofthose or other similar goods
RELIEF AVAILABLE• The practice shall be discontinued or shall not be repeated• The agreement relating thereto, shall be void• Any information relating to such unfair trade practice shall be disclosed
REMEDIES UNDER THE ACT• Temporary Injunction• Compensation
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.