Unfair Trade Practises

Topics: Unfair business practices, Consumer protection, Law Pages: 6 (1622 words) Published: May 25, 2013
It is any fraudulent, deceptive, or dishonest trade practice that is prohibited by statute, regulation, or the Common Law. Unfair Trade Practice is to use various deceptive, fraudulent or unethical methods to obtain business. Unfair trade practices include misrepresentation, false advertising, tied selling and other acts that are declared unlawful by statute. It can also be referred to as deceptive trade practices.

The law of unfair competition serves five purposes.
* The law seeks to protect the economic, intellectual, and creative investments made by businesses in distinguishing themselves and their products. * The law seeks to preserve the good will that businesses have established with consumers. * The law seeks to deter businesses from appropriating the good will of their competitors. * It seeks to promote clarity and stability by encouraging consumers to rely on a merchant's good will and reputation when evaluating the quality of rival products. * The law seeks to increase competition by providing businesses with incentives to offer better goods and services than others in the same field. OBJECTIVE OF THE ACT

An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith.

Section 1 – Short Title, Extent and Commencement
Section 2 – Definitions
Section 3 to 31 – Other Provisions
Section 1
Short Title: Consumer Protection Act, 1986
Extent: CP Act applies to whole of India except Jammu and Kashmir Section 2 : Definitions
"complainant" means -
(i) a consumer; or
(ii) 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 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;— (1) 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;

(iv) represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have;

(v) represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have;

(vi) makes a false or mislead ding representation concerning the need for, or the usefulness of, any goods or services;

(vii) gives to the public...
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