Restrictive Trade Practices With Examples In Orange
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Hoarding or destruction of goods. Making false or misleading representation of facts disparaging the goods, services or trade of another person is also a restrictive trade practice under Indian law.
Unfair trade practices refer to businesses using deceptive, fraudulent, or otherwise unethical methods to gain an advantage or turn a profit. Consumer Protection Law, as well as Section 5(a) of the Federal Trade Commission Act, protects consumers from unfair business practices.
A business agreement between companies which controls prices or the areas in which goods are sold, preventing fair competition from other companies.
For example, in the construction industry, it is a trade practice to use certain specifications for the size, thickness, and quality of building materials. These specifications are commonly accepted and used by all businesses in the industry, ensuring consistency and quality in the final product.
1 Practices which affect the ability of firms to compete freely in markets for their products and inputs. This includes discrimination between customers by suppliers, exclusive dealing arrangements, and agreement or collusion to share out markets, either geographically or by products.
But after the New economic reforms, liberalization, privatization, and globalization it was necessary that there must be competition in the market for the survival of the fittest. Therefore, the MRTP Act 1969 was replaced by Competition Act in year 2002.
Types of Unfair Trade Practices ①Refusal to Deal. ② Discriminatory Treatment. ③ Exclusion of a Competitor. ④ Unfair Solicitation of Customers. ⑤ Coercion of Transaction. ⑥ Abuse of Superior Bargaining Position. ⑦ Imposing Binding Conditional Trade. ⑧ Obstruction of Business Activities.
An Act to provide that the operation of the economic system does not result in the concentration of economic power to the common detriment, for the control of monopolies, for the prohibition of monopolistic and restrictive trade practices and for matters connected therewith or incidental thereto.
MRTP Act was introduced to check monopolies. The MRTP Act was relaxed in 1991. This Act was enacted to prevent the concentration of economic power to common detriment, control of monopolies, and prohibition of monopolistic and restrictive trade practices (MRTP) and matters connected therewith.
