Introduction

The Monopolies And Restrictive Trade Practices Act, 1969 is an important piece of
economic legislation designed to ensure that the operation of the economic
system does not result in the concentration of economic power to the common
detriment.

The act came into force from 1st June, 1970, and has been amended in 1991.

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 Objectives
Before Amendment After Amendment in 1991:-
in1991:-  Controlling
 Regulation of monopolies monopolistic trade
and prevention of practices.
concentration of  Regulating restrictive
economic power. and unfair trade
 Prohibit monopolistic, practices.
restrictive and unfair
trade practices.

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 Monopolies And Restrictive Trade Practices

• Monopolistic Trade Practices

• Restrictive Trade Practices

• Unfair Trade Practices

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 Monopolies And Restrictive Trade Practices

It means in order to maximize profit and to increase market power, certain
business firms unreasonably charge high prices to prevent competition in the
production & distribution of goods and services.
It is a trade practice which represents the abuse of the market power by charging
unreasonably high prices.

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 Regulation of Monopolies And Restrictive Trade
Practices
• Regulation of production and fixing the term of sale.

• Prohibiting any action that restricts competition.

• Fixing standards for goods produced.

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 Restrictive Trade Practices

 A trade practice which restricts or reduces competition may be termed as

Restrictive Trade Practices and it harm the consumer interest.
 Because of their adverse effect on the consumer and public interest, they are
sought to be regulated in almost every country of the world

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 Regulation of Restrictive Trade Practices

• The practice shall not be repeated.

• The agreement shall be void and shall stand modified in such a manner as may be
specified in the order.

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 Unfair Trade Practices

 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 or deceptive practice.

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 Regulation of Unfair Trade Practices

• The practice shall not be repeated.

• Any agreement relating to such an UTP shall be void or shall stand modified in
such a manner as may be directed by the commission.

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 References

TextBooks:
•Paul, J. 2018. Business Environment: Text and Cases, 4thEdition, Tata McGraw Hill, India,

•Cherunilam, F. 2017. Business Environment: Text and Cases.26thEdition, Himalaya Publishing,

India, ISBN: 978-9352733361.

Reference Book:-
•Business Environment, 13th Edition, Pearson Education India, India, ISBN: 9788131731581.

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 Assessment Pattern

Components HT-1 HT-2 Assignment Surprise Test Business Quiz GD Forum Attendance Scaled
Marks

Max. Marks 10 10 6 4 4 4 2 40

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THANK YOU

For queries
Email:
reepu.usb@cumail.in

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