You are on page 1of 25

Legal Ethics-

The Acts
(Competition Act ; Unfair trade practices &
Official Secrets Act)

Prof Madhuvanti Date


1

Competition Act
The Monopolies and Restrictive Trade Practices Act, 1969 [MRTP
Act] repealed and is replaced by the Competition Act, 2002.
About the Act
Competition is the act of the sellers
individually seeking to acquire the
patronage of buyers in order to achieve
profits or market share.

The Competition Act, 2002 was enacted


by the Parliament of India and replaced
The Monopolies and Restrictive Trade
Practices Act, 1969.

It is in effect to govern Indian competition


law.
Two of the main features of the Competition Act, 2002 is the framework it
provides for the establishment of the Competition Commission, and the
tools it provides to prevent anti-competitive practices and to promote
positive competition in the Indian market.
Objectives of the Act
To provide the framework for the
establishment of the Competition
Commission.

To prevent monopolies and to promote


competition in the market.

To protect the freedom of trade for the


participating individuals and entities in the
market.

To protect the interest of the consumer.


The Competition Commission of India is established under the
Competition Act, 2002. It is a statutory body that has the power to govern
and enforce the Competition Act including penalties. It was established
when the need for a healthy competitive environment became necessary
following liberalisation under the Vajpayee government.
Composition & Powers
The Commission is composed of a
chairman and a minimum of 2 board
members and a maximum of 6 board
members. These members are required to
have a minimum of 15 years of experience
in their respective fields
Powers of the
Commision
Its objectives, duties and powers are
enumerated in the Competition Act, 2002. Its
main duty and object is to ensure that the
Indian markets maintain a healthy and fair
competitive environment and is granted the
power to ensure such an environment and
penalise any acts adversely affecting its duties.
1

News Article
https://brandequity.economictimes.indiatimes.com/news/digital/panel-to-weigh-competition-law-for-digital-companies/97678935
2

Unfair Trade Practices


Section 2(1) (r) of Consumer Protection Act, 1986 also defines the term
‘unfair trade practice’. It reads:

"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

https://www.youtube.com/watch?v=HczbHxWE7F4
Unfair Practices
distribution of false or misleading information that is
capable of harming the business interests of another
firm;

distribution of false or misleading information to


consumers, including the distribution of information
lacking a reasonable basis, related to the price,
character, method or place of production, properties,
and suitability for use, or quality of goods; false or
misleading comparison of goods in the process of
advertising;
fraudulent use of another’s trade mark, firm name, or
product labelling or packaging;

unauthorized receipt, use or dissemination of


confidential scientific, technical, production, business
or trade information.

The dictionary meaning of ‘unfair trade practice’ is: 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.
3

Official Secrets Act


About the Act
The Official Secrets Act of 1923 is India’s
anti-espionage.

It states that actions which involve helping


an enemy state against India are strongly
condemned.

It also states that one cannot approach,


inspect, or even pass over a prohibited
government site or area.

As per the act, helping an enemy state can


be in the form of communicating a sketch,
plan, a model of an official secret, or of
official codes or passwords, to the enemy.
Importance of the Act
The concept that every government has the right to hold specific
facts out of the public domain in the name of national security
runs in contrast to the fundamental description of democracy,
which is to serve the people.

The law also comes to a fork in the path, when it comes to Article
19 (1), which assures every citizen the right to freedom of speech
and expression.

The Official Secrets Act has been utilized randomly against media
outlets and journalists who have been identified to be critical for
the government's actions and policies

The law is in direct conflict with the Right to Information Act (RTI),
which came into existence in 2005 and provided a fertile ground
for bribery
Salient Features
The act enacted in 1923 comprises
penalties for spying under section 3 of the
act. This section provides for penalization
for spying, where if anyone approached,
inspected, etc. in any vicinity or place for
making any sketch, plot, model, etc.

It is susceptible to be punished under this


provision with imprisonment to a
maximum of about 15 years as provided
by these provisions.
Section 4 of the act makes the act of
communicating or just attempting to
communicate with foreign agents, is to be
addressed as an appropriate proof for proving
that such person communicating or
attempting to communicate is against the
security or interests of the state.

The section 5 specifies that, a person in


custody of any secret official code, etc.
utilized such confidential material in
forbidden place or otherwise in the manner
which is likely to support an enemy or
otherwise is dangerous to sovereignty and
integrity of India, then such person is to be
held at fault under this act
Punishment &
Prosecutions
Punishments under the OSA extend from a
minimum of three years to life
imprisonment (if the purpose was to
proclaim war against India - section 5).

An individual brought to trial under this act


can be charged with the crime, even if the
action was unintended and not planned to
jeopardize the safety of the state. The act
only entitles people in positions of
authority to deal with official secrets and
the rest who deal with it in forbidden areas
or outside them are liable for punishment
Punishment &
Prosecutions
Journalists have to help personnel of the
police forces with the rank higher than that
of a sub-inspector and members of the
military with an inquiry in relation to an
offense, up to and including disclosing his
sources of information.

Under the act, search warrants may be


granted at any time if the judge
determines that based on the proof there
exists enough threat to the security of the
state.
Criticism of the Act
The Official Secrets Act has often been considered to be in direct
conflict with the Right to Information (RTI) Act of 2005.

Section 22 of the RTI Act lays down its supremacy over other
laws, including the Official Secrets Act.

Hence, if the Official Secrets Act has any discrepancies with


regards to exposure of information, the RTI Act shall take
precedence.

The government can, however, retain information under Sections


8 and 9 of the RTI Act. In effect, if the government categorizes a
document as confidential under Official Secrets Act, it can be
retained outside the purview of the RTI Act
Criticism of the Act

Violation of National Security Misinterpretation

Section 5 of the Official Secrets Act, which deals with potential


national security violations, is often misunderstood.

Sharing information that might assist an enemy state is forbidden


under this section.

When journalists publicize information that may hinder the


government or the military services, the section comes to use for
booking charges against them.
1

News Article
https://indianexpress.com/article/explained/what-is-official-secrets-act-6603218/

Thank You

You might also like