THE MONOPOLIES

AND
RESTRICTIVE TRADE
PRACTICES (MRTP)
ACT, 1969
By : Amit Kumar Giri
PGDM Sec.A
Roll No. 13
IIMT Professional College
 This Act was enacted:
• To ensure that the operation of the
economic system does not result in the
concentration of economic power in the
hands of few
• To provide for the control of monopolies
• To prohibit monopolistic and restrictive
trade practices
The MRTP Act extends to the whole of
India except Jammu and Kashmir
 APPLICATION OF THE ACT
This Act shall not apply to:
• Any undertaking owned or controlled by
the Government Company
• Any undertaking owned or controlled by a
corporation
• Any undertaking owned by a co-operative
society formed and registered under any
Central, Provincial or State Act
• Any financial institution
 RESTRICTIVE TRADE
PRACTICE
A restrictive trade practice is a trade
practice which:
• Prevents, distorts or restricts
competition in any manner
• Obstructs the flow of capital or
resources into the stream of
production
• Tends to bring about manipulation of
prices or conditions
 RELIEF AVAILABLE
• The practice shall be discontinued or
shall not be repeated
• The agreement relating thereto, shall
be void
 UNFAIR TRADE PRACTICE
A trade practice which, for the purpose of
promoting any sale, use or supply of any
goods or services, adopts unfair method.
These are categorized as:
• False Representation
• False Price or Bargain Price
• Free gifts offer and Prize Schemes
• Non-compliance of Prescribed Standards
• Hoarding, Destruction etc.
1. FALSE REPRESENTATION
• Falsely suggests that the goods are of particular
standard quality, grade and composition
• Falsely suggest any re-built good as new one
• Makes a misleading representation concerning for
the need for, or the usefulness of, any goods or
services
• Gives any warrantee or guarantee to the
performance and efficacy of the goods that is not
based on proper tests
• A promise to replace until it has achieved a
specified result
 2. FALSE OFFER OR
BARGAIN PRICE
When an advertisement is published
in newspaper, offering goods at a
bargain price when in fact there is no
such intention that the same may be
offered at the same price for
reasonable period
 3. FREE GIFTS OFFER AND
PRIZE SCHEMES
• Offering any gifts along with some other
goods when the intention is different
• Creating an impression that something is
offered free when in fact the price is
included in the price of article sold
• Offering some prizes to the buyers by the
conduct of any contest with real intention
to promise sales
 4. NON-COMPLIANCE OF
PRESCRIBED STANDARDS
Any sale or supply of goods, knowing
or having reason to believe that the
goods do not comply with the
standards prescribed by some
competent authority
 5. HOARDING,
DESTRUCTION ETC.
Any practice of that permits the
hoarding or destruction of goods,
with an intention to raise the cost of
those or other similar goods
 RELIEF AVAILABLE
• The practice shall be discontinued or
shall not be repeated
• The agreement relating thereto, shall
be void
• Any information relating to such
unfair trade practice shall be
disclosed
REMEDIES UNDER THE ACT
• Temporary Injunction
• Compensation