Professional Documents
Culture Documents
I, Nadirshaw .K. Dhondy, Lecturer of A.I.A.I.M.S, have examined the thesis of Mr. ROHAN ASHOK SAWANT who is enrolled in A.I.A.I.M.S. for the academic years 2011- 2014 in the Masters of Marketing Management . The Thesis is in part fulfillment of the university programme for the subject in BUSINESS LAW. Dated this _______ day of October 2011
Signature
Signature
ACKNOWLEDGEMENT
I sincerely thank Prof. Nadirshaw .k. Dhondy completing this project in a better manner.
compile this project and also for providing necessary information which helped me in I will be looking for such types of projects in near future and do our best.We are eagerly waiting for fruitful comments and constructive suggestios.
UNFAIR TRADE PRACTISES ARE RESTRICTIVE, BUT NOT ALL RESTRICTIVE TRADE PRACTISES ARE UNFAIR
INTRODUCTION
In the new corporate and business world today where there is cut throat competition the business persons daringly use unfair trade practices to edge over the other. This may give them advantage for short term but in long run it affects the organization and eventually the entire industry. There is always been confusion regarding the correct definition for unfair and restrictive trade practices, also the about which practices to be considered as unfair. Let us first define the term and the practices to be included.
People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.
-Adam Smith, The Wealth of Nations (1776)
or to repeat or continue a service until it has achieved a specified result. if such purported warranty or guarantee or promise is materially misleading or if there is no reasonable prospect that such warranty, guarantee or promise will be carried out; (ix) materially misleading the public concerning the price at which a product or like products or goods or services, have been, or are, Ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the relevant market unless it is clearly specified to be the price at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made; (x) gives false or misleading facts disparaging the goods, services or trade of another person. Explanation : For the purposes of clause (1), a statement that is (a) expressed on an article offered or displayed for sale, or on its wrapper or container; or (b) expressed on anything attached to, inserted in, or accompanying, an article offered or displayed for sale, or on anything on which the article is mounted for display or sale; or (c) contained in or on anything that is sold, sent, delivered, transmitted or in any other manner whatsoever made available to a member of the shall be deemed to be a statement made to the public by, and only by, the person who had caused the statement to be so expressed, made or contained; (2) permits the publication of any advertisement whether in any newspaper or otherwise, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price, or for a period that is, and in quantities that are, reasonable, having regard to the nature of the market in which the business is carried on, the nature and size of business, and the nature of the advertisement. Explanation: For the purpose of clause (2), "bargain price" means -
(a) a price that is stated in any advertisement to be a bargain price, by reference to an ordinary price or otherwise, or (b) a price that a person who reads, hears, or sees the advertisement, would reasonably understand to be a bargain price having regard to the prices at which the product advertised or like products are ordinarily sold; (3) permits (a) the offering of gifts, prizes or other items with the intention of not providing them as offered or creating the impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole. (b) the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest; (4) permits the sale or supply of goods intended to be used, or are of a kind likely to be used by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by competent authority relating to performance, composition, contents, design, constructions, finishing or packaging as are necessary to prevent or reduce the risk of injury to the person using the goods; (5) permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available for sale, or to provide any service, if such hoarding or destruction or refusal raises or tends to raise or is Intended to raise, the cost of those or other similar goods or services.
1. FALSE REPRESENTATION
The practice of making any oral or written statement or representation which:
Falsely suggests that the goods are of a particular standard quality, quantity, grade, composition, style or model; Falsely suggests that the services are of a particular standard, quantity or grade;
Falsely suggests any re-built, second-hand renovated, reconditioned or old goods as new goods; Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which they do not have; Represents that the seller or the supplier has a sponsorship or approval or affiliation which he does not have; Makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services; Gives any warranty or guarantee of the performance, efficacy or length of life of the goods, that is not based on an adequate or proper test; Makes to the public a representation in the form that purports to bea. a warranty or guarantee of the goods or services, b. a promise to replace, maintain or repair the goods until it has achieved a specified result, If such representation is materially misleading or there is no reasonable prospect that such warranty, guarantee or promise will be fulfilled
Materially misleads about the prices at which such goods or services are available in the market; or Gives false or misleading facts disparaging the goods, services or trade of another person.
2. FALSE OFFER OF BARGAIN PRICEWhere an advertisement is published in a newspaper or otherwise, whereby goods or services are offered at a bargain price when in fact there is no intention that the same may be offered at that price, for a reasonable period or reasonable quantity, it shall amount to an unfair trade practice. The bargain price, for this purpose meansa. the price stated in the advertisement in such manner as suggests that it is lesser than the ordinary price, or b. The price which any person coming across the advertisement would believe to be better than the price at which such goods are ordinarily sold. FREE GIFTS OFFER AND PRIZE SCHEMES The unfair trade practices under this category are:
Offering any gifts, prizes or other items along with the goods when the real intention is different, or Creating impression that something is being offered free along with the goods, when in fact the price is wholly or partly covered by the price of the article sold, or Offering some prizes to the buyers by the conduct of any contest, lottery or game of chance or skill, with real intention to promote sales or business.
4. NON-COMPLIANCE OF PRESCRIBED STANDARDS Any sale or supply of goods, for use by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by some competent authority, in relation to their performance, composition, contents, design, construction, finishing or packing, as are necessary to prevent or reduce the risk of injury to the person using such goods, shall amount to an unfair trade practice.
5. HOARDING, DESTRUCTION, ETC. Any practice that permits the hoarding or destruction of goods, or refusal to sell the goods or provide any services, with an intention to raise the cost of those or other similar goods or services, shall be an unfair trade practice. INQUIRY INTO UNFAIR TRADE PRACTICES The Commission may inquire into Any unfair trade practice
Upon receiving a complaint from any trade association, consumer or a registered consumer association, or Upon reference made to it by the Central Government or State Government Upon an application to it by the Director General or Upon its own knowledge or information.
RELIEF AVAILABLE After making an inquiry into the unfair trade practices if the Commission is of the opinion that the practice is prejudicial to the pubic interest, or to the interest of any consumer it may direct that
The practice shall be discontinued or shall not be repeated; The agreement relating thereto shall be void in respect of such unfair trade practice or shall stand modified. Any information, statement or advertisement relating to such unfair trade practice shall be disclosed, issued or published as may be specified The Commission may permit the party to carry on any trade practice to take steps to ensure that it is no longer prejudicial to the public interest or to the interest of the consumer.
However no order shall be made in respect a trade practice which is expressly authorized by any law in force. The Commission is empowered to direct publication of corrective advertisement and disclosure of additional information while passing orders relating to unfair trade practices.
ii.
iii. iv. v.
maintaining the prices of goods or charges for the services at an unreasonable level by limiting, reducing or otherwise controlling the production, supply or distribution of goods or services; unreasonably preventing or lessening competition in the production, supply or distribution of any goods or services whether or not by adopting unfair method or fair or deceptive practices; limiting technical development or capital investment to the common detriment; deteriorating the quality of any goods produced, supplied or distribute; and increasing unreasonably a. the cost of production of any good; or b. charges for the provision, or maintenance, of any services; or c. the prices for sale or resale of goods; or d. The profits derived from the production, supply or distribution of any goods or services.
A monopolistic trade practice is deemed to be prejudicial to the public interest, unless it is expressly authorized under any law or the Central Government permits to carry on any such practice. INQUIRY INTO MONOPOLISTIC TRADE PRACTICES The Commission may inquire into Any monopolistic trade practice,
Upon a reference made to it by the Central Government or Upon an application made to it by the Director General or Upon it own knowledge or information
RELIEF AVAILABLE
a. Where the inquiry by the Commission reveals that the trade practice inquired into operates or is likely to operate against public interest, the Central Government may pass such orders as it thinks fit to remedy or present any mischief resulting from such trade practice. b. On an inquiry report of the Commission, the Central Government mayi. Prohibit the owner(s) of the concerned undertaking(s) from continuing to indulge in a monopolistic trade practice; or ii. Prohibit the owner of any class of undertakings or undertakings generally, from continuing to indulge in any monopolistic trade practice in relation to the goods or services. c. The Central Government may also make an order: i. Regulating the production, storage, supply, distribution, or control of any goods or services by an undertaking and fixing the terms of their sale (including prices) or supply; ii. Prohibit any act or practice or commercial policy which prevents or lessens competition in the production, storage, supply or distribution of any goods or services; iii. Fixing standards for the goods used or produced by an undertaking; iv. Declaring unlawful the making or carrying out of the specified agreement; v. Requiring any party to the specified agreement to determine the agreement within the specified time, either wholly or to specified extent; vi. Regulating the profits which may be derived from the production, storage, supply, distribution or control of any goods or services; or vii. Regulating the quality of any goods or services so that their standard does not deteriorate. POWERS OF THE COMMISSION The MRTP Commission has the following powers: 1. Power of Civil Court under the Code of Civil Procedure, with respect to: a. Summoning and enforcing the attendance of any witness and examining him on oath;
2. 3. 4.
5.
b. Discovery and production of any document or other material object producible as evidence; c. Reception of evidence on affidavits; d. Requisition of any public record from any court or office. e. Issuing any commission for examination of witness; and f. Appearance of parties and consequence of non-appearance. Proceedings before the commission are deemed as judicial proceedings with in the meaning of sections 193 and 228 of the Indian Penal Code. To require any person to produce before it and to examine and keep any books of accounts or other documents relating to the trade practice, in its custody. To require any person to furnish such information as respects the trade practice as may be required or such other information as may be in his possession in relation to the trade carried on by any other person. To authorize any of its officers to enter and search any undertaking or seize any books or papers, relating to an undertaking, in relation to which the inquiry is being made, if the commission suspects tat such books or papers are being or may be destroyed, mutilated, altered, falsified or secreted.
PRELIMINARY INVESTIGATION Before making an inquiry, the Commission may order the Director General to make a preliminary investigation into the complaint, so as to satisfy itself that the complaint is genuine and deserves to be inquired into.
All unfair trade practices are restrictive but all restrictive trade prices are not unfair.
Unfair trade practice is illegal but restrictive trade practice could be extra legal which means that it could have sanction under extra ordinary/special provisions of the law. Like Ambulances, Fire Engines, police vehicles have right to enter no entry area or one way streets from wrong end under special provisions of the law. Eg of Restrictive Trade Practices 1. Coca Cola stopping its vendors from keeping the soft drinks of its rival brands. 2. M/s TELCO ordering vehicle maintenance firm near Lonavla Ghats to refuse service of vehicles other than TATA. TELCO won the case on the ground that the technicians had only been trained for maintenance of TATA vehicles. Agreements in restriction of the trade are void. A bond indicating payment of penalty in case of employee quitting the job where in there is no training involved is void. However, if there is training imported to the employee, and then the bond is fully valid. If a bond states a time frame against joining a rival company within specified period of leaving the job by the employee, it is valid only if the next location is within 5 KM radius by crow flight. If a person joins another rival company which is more than 5 Km from his previous job location, the bond does not apply on him.
Dipys brand which was very popular in south India, to kill competition. But profits platoed again after temporary rise. Mr Vithal Mallya, owner of Herbertson Co, manufacturer of Kissan brand was manufacturing the sauce in Mumbai and marketing in North India. When the sales growth stalled, Mr Mallya got the taste of Dipys brand modified gradually to Kissans taste over a period of 18 months.Thereafter, he started marketing the sauce sourced from the same factory on two brand names. Thereby, he started saving on transportation and octrai etc and profits grew. This practice was observed by Kalvert and complaint was made. However, Dipys won the case narrowly. Jute, Cement and Iron & Steel are exempted from this law due to bulkiness and weight and cost involvement in transportation.
Max Retail Pricing. Differential Retail Pricing within the same city
(Say Colaba and Govandi) is not permitted. However, MRP can vary between Mumbai and Pune or Delhi. This is done to avoid differentiation as per economic segregation in areas. In pharmaceutical industry, there is drug price control order. It means that drug prices are controlled by the Govt. Any other price which is not regulated is at option of manufacturer and the market forces. Essential Commodities Act provides for regulation of price and this is critically important because it has also concept of MRP.
Market Survey. Market survey for fixing differential MRP is illegal. Price Fixation (Cartel Formation). Price fixation ie. Dropping of
prices by the existing manufacturer to the disadvantages of the new entrant is constituted to be illegal. WTO has no clause regarding Cartel formation. No international law exists against Cartel formation. That is how OPEC is existing. There are Gold and Silver trading cartels.
years with loss and decided to close operations. However they were persuaded to continued by a gentleman who promised a turn around in one year. He then offered the spare railway land on sides of the railway line to farmers with a understanding that they would transport the excess produce (approx 40% of the total) through the railways. Farmers were delighted at the proposal and ended up transporting whole produce by railways only. Truckers suffered loss and therefore complained. Case was lost by the railways.
S.O. 816 (E) In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations, namely:-
PART I PRELIMINARY Short title and commencement (1) These regulations may be called the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations, 2003. (2) They shall come into force on the date of their publication in the Official Gazette.
Definitions
(1) In these regulations, unless the context otherwise requires,(a) "Act" means the Securities and Exchange Board of India Act, 1992 (15 of 1992); (b) "dealing in securities" includes an act of buying, selling or subscribing pursuant to any issue of any security or agreeing to buy, sell or subscribe to any issue of any security or otherwise transacting in any way in any security by any person as principal, agent or intermediary referred to in section 12 of the Act.
(c) "fraud" includes any act, expression, omission or concealment committed whether in a deceitful manner or not by a person or by any other person with his connivance or by his agent while dealing in securities in order to induce another person or his agent to deal in securities, whether or not there is any wrongful gain or avoidance of any loss, and shall also include-
(1)
A knowing misrepresentation of the truth or concealment of material fact in order that another person may act to his detriment; A suggestion as to a fact which is not true by one who does not believe it to be true; An active concealment of a fact by a person having knowledge or belief of the fact; A promise made without any intention of performing it; A representation made in a reckless and careless manner whether it is true or false; Any such act or omission as any other law specifically declares to be fraudulent, deceptive behaviour by a person depriving another of informed consent or full participation, a false statement made without reasonable ground for believing it to be true. The act of an issuer of securities giving out
(2)
(3)
(4) (5)
(6)
(7)
(8)
(9)
misinformation that affects the market price of the security, resulting in investors being effectively misled eventhough they did not rely on the statement itself or anything derived from it other than the market price.And "fraudulent" shall be construed accordingly;Nothing contained in this clause shall apply to any general comments made in good faith in regard to (a) The economic policy of the government (b) The economic situation of the country (c) Trends in the securities market or (d) Any other matter of a like nature Whether such comments are made "Investigating Authority" means (e) "securities" means securities as defined in section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).
(2) Words and expressions used and not defined in these regulations, but defined in the Act or in the rules or regulations made thereunder, shall have the meanings respectively assigned to them in the Act or rules or regulations made thereunder, as the case may be.
PART II
PROHIBITION OF FRAUDULENT AND UNFAIR TRADE PRACTICES RELATING TO THE SECURITIES MARKET
3.
No person shall directly or indirectly(a) (b) buy, sell or otherwise deal in securities in a fraudulent manner; use or employ, in connection with issue, purchase or sale of any security listed or proposed to be listed in a recognized stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of the Act or the rules or the regulations made there under; employ any device, scheme or artifice to defraud in connection with dealing in or issue of securities which are listed or proposed to be listed on a recognized stock exchange; engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person in connection with any dealing in or issue of securities which are listed or proposed to be listed on a recognized stock exchange in contravention of the provisions of the Act or the rules and the regulations made there under.
(c)
(d)
4.
(1) Without prejudice to the provisions of regulation 3, no person shall indulge in a fraudulent or an unfair trade practice in securities.
(2) Dealing in securities shall be deemed to be a fraudulent or an unfair trade practice if it involves fraud and may include all or any of the following, namely:-
(a) indulging in an act which creates false or misleading appearance of trading in the securities market;
(b) dealing in a security not intended to effect transfer of beneficial ownership but intended to operate only as a device to inflate, depress or cause fluctuations in the price of such security for wrongful gain or avoidance of loss;
(c) advancing or agreeing to advance any money to any person thereby inducing any other person to offer to buy any security in any issue only with the intention of securing the minimum subscription to such issue; (d) paying, offering or agreeing to pay or offer, directly or indirectly, to any person any money or moneys worth for inducing such person for dealing in any security with the object of inflating, depressing, maintaining or causing fluctuation in the price of such security;
(f) publishing or causing to publish or reporting or causing to report by a person dealing in securities any information which is not true or which he does not believe to be true prior to or in the course of dealing in securities;
(g) entering into a transaction in securities without intention of performing it or without intention of change of ownership of such security;
(h) selling, dealing or pledging of stolen or counterfeit security whether in physical or dematerialized form;
(i) an intermediary promising a certain price in respect of buying or selling of a security to a client and waiting till a discrepancy arises in the price of such security and retaining the difference in prices as profit for himself;
(j) an intermediary providing his clients with such information relating to a security as cannot be verified by the clients before their dealing in such security;
(k) an advertisement that is misleading or that contains information in a distorted manner and which may influence the decision of the investors;
(l) an intermediary reporting trading transactions to his clients entered into on their behalf in ancommission and brokerage;
(m) an intermediary not disclosing to his client transactions entered into on his behalf including taking an option position;
(n) circular transactions in respect of a security entered into between intermediaries in order to increase commission to provide a false appearance of trading in such security or to inflate, depress or cause fluctuations in the price of such security;
(o) encouraging the clients by an intermediary to deal in securities solely with the object of enhancing his brokerage or commission.
(q) an intermediary buying or selling securities in advance of a substantial client order or whereby a futures or option position is taken about an impending transaction in the same or related futures or options contract.
PART III
INVESTIGATION
Power of the Board to order investigation
5.
Where the Board, the Chairman, the member or the Executive Director (hereinafter referred to as appointing authority) has reasonable ground to believe that -
(a) the transactions in securities are being dealt with in a manner detrimental to the investors or the securities market in violation of these regulations; (b) any intermediary or any person associated with the securities market has violated any of the provisions of the Act or the rules or the regulations,it may, at any time by order in writing, direct any officer not below the rank of Division Chief (hereinafter referred to as the Investigating Authority) specified in the order to investigate the affairs of such intermediary or persons associated with the securities market or any other person and to report thereon to the Board in the manner provided in section 11C of the Act.
(1) to call for information or records from any person specified in section 11(2)(i) of the Act;
(2) to undertake inspection of any book, or register, or other document or record of any listed public company or a public company (not being intermediaries referred to in section 12 of the Act) which intends to get its securities listed on any recognized stock exchange where the Investigating Authority has reasonable grounds to believe that such company has been conducting in violation of these regulations;
(3) to require any intermediary or any person associated with securities market in any manner to furnish such information to, or produce such books, or registers, or other documents, or record before him or any person authorized by him in this behalf as he may consider necessary if the furnishing of such information or the production of such books, or registers, or other documents, or record is relevant or necessary for the purposes of the investigation;
(4) to keep in his custody any books, registers, other documents and record produced under this regulation for a maximum period of one month which may be extended upto a period of six months by the Board:
Provided that the Investigating Authority may call for any book, register, other document or record if the same is needed again:Provided further that if the person on whose behalf the books, registers, other documents and record are produced requires certified copies of the books, registers, other documents and record produced before the Investigating Authority, he shall give certified copies of such books, registers, other documents and record to such person or on whose behalf the books, registers, other documents and record were produced;
(5) to examine orally and to record the statement of the person concerned or any director, partner, member or employee of such person and to take notes of such oral examination to be used as an evidence against such person:Provided that the said notes shall be read over to, or by, and signed by, the person so examined;
(6) to examine on oath any manager, managing director, officer or other employee of any intermediary or any person associated with securities market in any manner in relation to the affairs of his business and may administer an oath accordingly and for that purpose may require any of those persons to appear before him personally.
(b) extend to the Investigating Authority reasonable facilities for examining any books, accounts and other documents in his custody or control (whether kept manually or in computer or in any other form) reasonably required for the purposes of the investigation; (c) provide to such Investigating Authority any such books, accounts and records which, in the opinion of the Investigating Authority, are relevant to the investigation or, as the case may be, allow him to take out computer out-prints thereof.
Provided that the Investigating Authority may submit an interim report pending completion of investigations if he considers necessary in the interest of investors and the securities market or as directed by the appointing authority.
interests of investors and securities market, issue or take any of the following actions or directions, either pending investigation or enquiry or on completion of such investigation or enquiry, namely:(a) suspend the trading of the security found to be or prima-facie found to be involved in fraudulent and unfair trade practice in a recognized stock exchange; (b) restrain persons from accessing the securities market and prohibit any person associated with securities market to buy, sell or deal in securities; (c) suspend any office-bearer of any stock exchange or self-regulatory organization from holding such position; (d) impound and retain the proceeds or securities in respect of any transaction which is in violation or prima facie in violation of these regulations; (e) direct any intermediary or any person associated with the securities market in any manner not to dispose of or alienate an asset forming part of a fraudulent and unfair transaction:
(f)
require the person concerned to call upon any of its officers, other employees or representatives to refrain from dealing in securities in any particular manner;
(g) prohibit the person concerned from disposing of any of the securities acquired in contravention of these regulations;
(h) direct the person concerned to dispose of any such securities acquired in contravention of these regulations, in such manner as the Board may deem fit, for restoring the status-quo ante; (2) The Board shall issue a press release in respect of any final order passed under sub-regulation (1) in atleast two newspapers of which one shall have nationwide circulation and shall also put the order on the website of the Board.
(a) Issue a warning or censure (b) suspend the registration of the intermediary; or (c) cancel of the registration of the intermediary Provided that no final order of suspension or cancellation of an intermediary for violation of these regulations shall be passed unless the procedure specified in the regulations applicable to such intermediary under the Securities and Exchange Board of India (Procedure for Holding Enquiry byEnquiry Officer and Imposing Penalty) Regulations, 2002 is complied with.
Repeal and savings 13. (1) The Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 is hereby repealed. (2) Notwithstanding repeal of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995, any violation of regulations 3, 4, 5 and 6 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 shall be investigated and proceeded against in accordance with the procedure laid down in these regulations. (3) Notwithstanding repeal of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995, any investigation pending, at the commencement of these regulations shall be continued and disposed of in accordance with the procedure laid down in these regulations.
CONCLUSION
In order to maintain competitive standards in these and other industries, Indian law has provided, under several Acts, for the presence of regulatory mechanisms. As before, these have been discussed in detail in the preceding chapters, and are summarised below: The Monopoly and Restrictive Trade Practices (MRTP) Act has the power to play an important role in protecting consumer rights through better prices, quality etc of goods and services, by performing the tasks its name suggests. Set to replace the MRTP Act is the Competition Act of 2002. The key difference lies in its emphasis on a behavioural approach in examining competition in market rather than the structural approach followed by MRTP Act. The Competition Act provides for the creation of the Competition Commission of India (CCI) which among other things has a competition advocacy role. The other core areas on which the Act focuses are anti-competitive agreements, abuse of dominance and regulation of combinations. COPRA, or the Consumer Protection Act of 1986, which was subsequently amended in 1993 and 2002, was enacted for the specific purpose of protecting consumers This is true that UTP is an inseparable part of the business but it is not the fair part of business. It may give you benefits for short time period but in long run it has an notable impact on business. It has a direct impact not only on that particular company but also on entire market. The impact of UTP can effect the reputation of industry, country and the employee working in that organization. Therefore companies should not concentrate on the shortcut ways and get involve in UTP.
BIBLIOGRAPHY 1) Dealing with Unfair Trade Practices Carl Buik Addis Ababa 2) CHAPTER IV THE MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969 : 3) business standard.
EPILOGUE
To summarise the discussion it can be said that the competition regime can have significant impact on consumer access if fullest used is made of its capabilities. Often, as in case of the MRTPC, it has been found that more could be done, but wasnt. The reasons behind these could be resource constraints as in case of MRTPC or structural anomalies (state ownership of transmission utilities in case of electricity) which blunts the regulators powers in giving free rein to competition. However this does not mean that competitive forces can always guarantee best and equitable outcomes as far as access is concerned. There are specificities of sectors and industries which warrant a differential approach with strong regulation of prices (pharmaceuticals for example) side by side with introducing flexibilities in regimes that guarantee exclusivity. Unfair trade practice is illegal but restrictive trade practice could be extra legal which means that it could have sanction under extra ordinary/special provisions of the law. Like Ambulances, Fire Engines, police vehicles have right to enter no entry area or one way streets from wrong end under special provisions of the law.