MRTP ACT, 1969

PROF. DHAVAL BHATT

 MRTP ACT: OBJECTIVES

• To Control and regulation of concentration

of economic power.
• To Control of monopolies and monopolistic
trade practices; and
• Prohibition of restricted trade practices.
 RESTRICTIVE TRADE
PRACTICES
An RTP under the act had defined to be the one that
had the effect of preventing, distorting or
restricting competition in any manner.

Common practices of RTP were as follows:

• Restriction on buying and selling
• Tie in sales
• Exclusive dealership agreement
• Collective price fixation
• Output or supply restrictions
• Price control agreements
 MONOPOLISTIC TRADE
PRACTICES
MRTP Act - Sec 2(i), an MTP was defined as a trade practice
which had any of the following effect:

1.Limiting or controlling, supply or distribution of goods or

services thereby maintaining their price at unreasonable level.
2.Limiting the technical development or capital investment.
3.Unreasonably preventing of restricting competition.
4.Unreasonably increasing cost of production.
5.Unreasonably increasing profits on production, or distribution.
6.Resorting to unfair means to reduce or prevent competition in
goods or services.
UNFAIR TRADE PRACTICES
False or misleading representation
Quality or standard of goods or services.
Old goods as new
Utility of good and services.
Guarantee of good without proper test.
Price of good and services.
Sponsorship of goods or services supplier.
UNFAIR TRADE PRACTICES

• False offer or Bargain price

• Offering of Gifts and Conducting Promotional Contest
• Product Safety Standards
• Hoarding or Destruction of Goods Act, 1986
 THE COMPETITION ACT,
2002
MRTP Act has been replaced by the
competition Act, 2002 on recommendation of
the SVS Raghvan committee.
The commission into effect from 14 January
2003.
Composition consists of:
– Chairman and
– 2 – 10 members.
 BASIC FEATURES OF
COMMISSION
• To eliminate practices having adverse
impact on competition.
• To promote and sustain competition.
• To protect interest of consumer.
• To ensure freedom of trade carried out by
other participants in market.