MRTPCs unfair trade practices not in new Act,govt tells watchdog

The MCA has now taken up the matter with the anti-competitive practices watchdog and has asked it to explore the possibility of incorporating the definition of unfair trade practices in the competition legislation.

Legal experts say the government can explore two possibilities it can either provide more power to consumer affairs ministry or amend the competition act. The CCI argues that the act need not be amended and the competition watchdog can resolve the problem via section 3 of the anti-competitive agreements.

However,experts argue that section 3 does not cover matters like misrepresentation of facts.

According to the erstwhile MRTP act,1969,an unfair method or a deceptive practice is one adopted for the purpose of promoting the sale,use or supply of any goods or for the provision of any services. It can include practices such as making false statements in relation to the quality,quantity,sponsorship,uses or benefits of goods,passing off old goods as new,or giving of warranty or guarantee which is not based on proper test,etc.

In fact,practices such as misleading the public about prices,or advertising the sale or services at a bargain price which is not intended to be sold at such price,sale of goods that do not comply with the standards prescribed,fall under unfair trade practices.

However,as per the new arrangement,though the consumer courts can provide relief to duped customers,they cannot eliminate the practice per se.