Mrtp Bill CaseEssay Preview: Mrtp Bill CaseReport this essayThe MRTP Act, 1969Post independence, many new and big firms have entered the Indian market. They had little competition and they were trying to monopolize the market. The Government of India understood the intentions of such firms. In order to safeguard the rights of consumers, Government of India passed the MRTP bill. The bill was passed and the Monopolies and Restrictive Trade PracticesAct, 1969, came into existence. Through this law, the MRTP commission has the power to stop all businesses that create barrier for the scope of competition in Indian economy.
The MRTP Act, 1969, aims at preventing economic power concentration in order to avoid damage. The act also provides for probation of monopolistic, unfair and restrictive trade practices. The law controls the monopolies and protects consumer interest.
Monopolistic Trade PracticeSuch practice indicates misuse of ones power to abuse the market in terms of production and sales of goods and services. Firms involved in monopolistic trade practice tries to eliminate competition from the market. Then they take advantage of their monopoly and charge unreasonably high prices. They also deteriorate the product quality, limit technical development, prevent competition and adopt unfair trade practices.
Unfair Trade PracticeThe following may result in an unfair trade practice:False representation and misleading advertisement of goods and services.Falsely representing second-hand goods as new.Misleading representation regarding usefulness, need, quality, standard, style etc of goods and services.False claims or representation regarding price of goods and services.Giving false facts regarding sponsorship, affiliation etc. of goods and services.Giving false guarantee or warranty on goods and services without adequate tests.Restrictive Trade PracticeThe traders, in order to maximize their profits and to gain power in the market, often indulge in activities that tend to block the flow of capital into production. Such traders also bring in conditions of delivery to affect the flow of supplies leading to unjustified costs.
