MRTP (MONOPOLIES AND

RESTRICTIVE TRADE PRACTICES ACT) ,

1969

 Aim to prevent concentration of economic power in

the private hands.

 Main objective: to maintain balance between

economic development and equity.

 The prohibition of monopolistic trade practices.

 The prohibition of unfair trade practices .

 
 
MONOPOLISTIC TRADE PRACTICE:

 Maintenance of Prices & profits at

unreasonable levels.

 High expenditure on advertisement &

salesmanship to prevent from monopoly.

 Restrict allowing quality of goods to worse.

UNFAIR TRADE PRACTICE:

 Misleading advertisement and False

Representation .

 Falsely representing that goods and services

are of a particular quality, grade,
composition .

 Falsely representing any second hand

renovated or old goods as new.
CONT…
 Giving to public any warranty, guarantee of
performance.

 Representing that goods or services, seller or

supplier have no approval.

 Giving false or misleading facts unlike the

goods.
RESTRICTIVE TRADE PRACTICES:

 Restricting terms of guarantee .

 Bumper price contests.

 Price of the goods are increased to cover the cost
of prices.

 Announcing loan facilities.

 Sale of goods in false prices.

.
MRTP & NEW INDUSTRIAL
POLICY 1991:
 MRTP Act will be restructured.

 Eliminating the legal requirement.

 Provision relating to merger, takeover.

 Provision regarding transfer of shares.

 Emphasis on complaints received from the

individual consumers.