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Define Unfair trade practices under consumer protection Act, 1986.

Define Unfair trade practices under consumer protection Act, 1986.

Course: B.Com
1 Answer

Unfair Trade Practices (UTP): Section 36A of Consumer Protection Act, 1986 defines unfair trade practices are practices which for the purpose of sales or for the provisions of the services, adopt unfair methods, or deceptive practices. Some of the deceptive practices included under the definition are: False Representation and Misleading.

  • The stated standards, quality, quantity, grade, model, style or composition in an advertisement are not in the actual product.
  • Product Non-compliance with safety standards.
  • Holding and destruction of goods to create artificial inflation.
  • Conducting promotional schemes or contests to offer gifts, discounts, free product, etc with an intention of not giving them.
  • Baiting.
  • Switch selling.
  • Bargain sales

Unfair Trade Practices have been defined in both MRTP Act, 1969 and Consumer Protection Act, 1986. No relief to Consumers in Case of Unfair and Restrictive Trade Practices. In case of Restrictive Trade Practices (RTP) and Unfair Trade Practices (UTP), the district forum may order the involved entities to do away from these or ask not to report such cases.

Person who can file a complaint under the Act: A person who can file a complaint under the Act can be from any of the following categories:

  • A consumer (who bought/received certain goods/ services).
  • Group of Consumers having Common Interest/Grievances or complaints.
  • Central Government.
  • Any State Government.
  • A Voluntary Consumer Association, registered under Companies Act, 1956 or other law in force.
  • Consumer Protection Councils.

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