1. THE MONOPOLIES
AND RESTRICTIVE
TRADE PRACTICES
ACT 1969

2. INTRODUCTION
• It came in to force from 1 June 1970
• It is designed to ensure that the operation of the
economic system does not result in concentration
of the economic power to the common
detriment.
• The act also provides for probation of
monopolistic, unfair and restrictive trade
practices.

3. INTRODUCTION
• The authority for this is derived from the
Directive Principles of State Policy contained in
Article 39 of the Constitution of India
• Has been amended in 1974 , 1980 , 1982 , 1984
and 1991.

4. OBJECTIVES
• Before the • After the amendment
amendment of 1991 of 1991
• Regulating • controlling
monopolies and monopolistic trade
preventing practices
concentration of • Regulating restrictive
economic power and unfair trade
• Prohibit monopolistic , practices
restrictive and unfair
trade practices

5. MONOPOLISTIC TRADE PRACTICES
• Any trade practice which seeks to prevent
competition and which results in high price.
Such as
• Unreasonably high prices
• Limiting technical development
• Limiting capital investment
• Lower quality of good and services
• Preventing or lessening competition

6. RESTRICTIVE TRADE PRACTICES
• Any trade practice that that tend to block the
flow of capital into production and also bring in
conditions of delivery to affect the flow of
supplies leading to unjustified costs.
Such as
• Refusal to deal with persons or classes of
persons
• Tie in sales or full line forcing
• Exclusive dealing agreements
• Collective price distribution and tendering

7. RESTRICTIVE TRADE PRACTICES
• Discriminatory dealing
• Re-sale price maintenance
• Restriction on output or supply of goods
• Control of manufacturing process
• Boycott
• Price control agreements
• Government recognition of practices as
restrictive
• Residual restrictive trade practices

8. UNFAIR TRADE PRACTICES
• Unfair trade practice means a trade practice
which, for the purpose of promoting the sale, use
or supply of any goods or for the provision of any
service, adopts any unfair or deceptive practice.
Such as
• Misleading advertisements and false
representation
• Advertising of bargain price
• Falsely representing second-hand goods as new.

9. UNFAIR TRADE PRACTICES
• Misleading representation regarding usefulness,
need, quality, standard, style etc of goods and
services
• Supplying unsafe and hazardous products
• Hoarding or destroying of goods
• Refusal to sell goods , resulting in a price rise
• Giving false facts regarding sponsorship, affiliation
etc. of goods and services.
• Giving false guarantee or warranty on goods and
services without adequate tests.

10. FILLING OF COMPLAINT UNDER
MRTP ACT
• In case of any unfair trade practice,
monopolistic trade practice or restrictive trade
practice, a complaint can be filed against such
practices to the MRTP commission. The
procedure for filing a complaint is as follows:

11. Complaint is filed either by the individual
consumer or through a registered consumer
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 compliant 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.

12. REGULATION OF MTP
• Central government may:
 Regulate production and fix terms of sale
 Prohibits any action that restricts competition
 Fix standards for goods and services

13. REGULATION OF RTP AND UTP
• The MRTP Commission if on enquiry concludes
that the practice under consideration is of
restrictive or unfair in nature , it may:
 Order discontinuation of the practice and restrict
its repetiton (cease and desist order )
 the agreement shall be void and shall stand
modified as may specified in the order