Unfair Trade Practises Essay Example

any voluntary consumer association; or (iii) the Central Government or any State Government, (iv) one or more consumers, where there are numerous consumers having the same interest; (v) in case of death of a consumer, his legal heir; “Complaint” means any allegation in writing made by a complainant that:

1.  An unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider;
2. The goods bought by him suffer from one or more defects ;
3. The services hired or availed of by him suffer from a deficiency in any respect;
4.  A trader has charged for the goods mentioned in the complaint a price in excess of the price fixed under any law or displayed on the goods or any package containing such goods.
5.  Goods which will be hazardous to life and safety when used, are being offered for sale to the public in contravention of the provisions of any law for the time being in force requiring traders to display information in regard to the contents, manner and effect of use of such goods 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 method or unfair or deceptive practice including any of the following practices, namely;

The practice of making any statement, whether orally or in writing or by visible representation which,— (i) Falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or model; ii)Falsely represents that the services are of a

particular standard, quality or grade; (iii)Falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods;

 Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have; represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have; makes a false or mislead ding representation concerning the need for, or the usefulness of, any goods or services; gives to the public any warranty or guarantee of the performance, efficacy or length of life of a product that is not based on an adequate or proper test;  gives false or misleading facts disparaging the goods, services or trade of another person.  permits the publication of any advertisement whether in any newspaper or otherwise, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price.

Permits—  the offering of gifts, prizes or other items with the intention of not providing them as offered or creating the impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole; b) the conduct of any contest, lottery, the game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest;  permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available for sale or to provide any service, if

such hoarding or destruction or refusal raises or tends to raise or is intended to raise, the cost of those or other similar goods or services Categorization Unfair practices may be categorized as under

The practice of making any oral or written statement or representation which:  Falsely suggests that the goods are of a particular standard quality, quantity, grade, composition, style or model;  Falsely suggests that the services are of a particular standard, quantity or grade; Falsely suggests any re-built, second-hand renovated, reconditioned or old goods as new goods;  Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which they do not have;  Represents that the seller or the supplier has a sponsorship or approval or affiliation which he does not have;  Makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services;  Gives any warranty or guarantee of the performance, efficacy or length of life of the goods, that is not based on an adequate or proper test;

Makes to the public a representation in the form that purports to be-a warranty or guarantee of the goods or services, a promise to replace, maintain or repair the goods until it has achieved a specified result if such representation is materially misleading or there is no reasonable prospect that such warranty, guarantee or promise will be fulfilled  Materially misleads about the prices at which such goods or services are available in the market; or gives false or misleading facts disparaging the goods, services or trade of another person.

2. False Offer Of Bargain Price

Where an advertisement is

published in a newspaper or otherwise, whereby goods or services are offered at a bargain price when in fact there is no intention that the same may be offered at that price, for a reasonable period or reasonable quantity, it shall amount to an unfair trade practice. The 'bargain price', for this purpose means-  the price stated in the advertisement in such manner as suggests that it is lesser than the ordinary price, 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.

Free Gifts Offer And Prize Schemes

The unfair trade practices under this category are: Offering any gifts, prizes or other items along with the goods when the real intention is different, or * Creating impression that something is being offered free along with the goods, when in fact the price is wholly or partly covered by the price of the article sold, 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.  Non-Compliance Of Prescribed Standards Any sale or supply of goods, for use by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by some competent authority, in relation to their performance, composition, contents, design, construction, finishing or packing, as are necessary to prevent or reduce the risk of injury to the person using such goods, shall amount to an unfair trade practice.

Hoarding, Destruction, Etc. Any practice that permits the hoarding or destruction of goods,

or refusal to sell the goods or provide any services, with an intention to raise the cost of those or other similar goods or services, shall be an unfair trade practice. Inquiry Into Unfair Trade Practices The Commission may inquire into any unfair trade practice  Upon receiving a complaint from any trade association, consumer or a registered consumer association, or  Upon reference made to it by the Central Government or State Government  Upon an application to it by the Director-General or  Upon its own knowledge or information. 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 public interest, or to the interest of any consumer it may direct that -  The practice shall be discontinued or shall not be repeated;  The agreement relating thereto shall be void in respect of such unfair trade practice or shall stand modified. * Any information, statement or advertisement relating to such unfair trade practice shall be disclosed, issued or published as may be specified  The Commission may permit the party to carry on any trade practice to take steps to ensure that it is no longer prejudicial to the public interest or to the interest of the consumer. However, no order shall be made in respect a trade practice that is expressly authorized by any law in force. The Commission is empowered to direct publication of corrective advertisement and disclosure of additional information while passing orders relating to unfair trade practices.