MRTP Act
Dr. Kavita Srivastava
Dr
Department of Management
ITS Ghaziabad
ITS,
Gh b d
Introduction
The MRTP Act
Act, 1969
The Monopolistic and Restrictive Trade Practices Act, 1969,
was enacted
y To ensure that the operation of the economic system does not
result in the concentration of economic power in hands of
few,
y To provide for the control of monopolies,
monopolies and
y To prohibit monopolistic and restrictive trade practices.
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Dr. Kavita Srivastava
3/9/2010
The MRTP Act extends to the whole of India except Jammu and
Kashmir. Unless the Central Government otherwise directs, this
act shall not apply to:
y Any undertaking owned or controlled by the Government,
y Any undertaking owned or controlled by a corporation (not being
a company established by or under any Central, Provincial or State
Act,
y Any trade union or other association of workmen or employees
formed for their own reasonable protection as such workmen or
employees,
y Any undertaking engaged in an industry
industry, the management of
which has been taken over by any person or body of persons under
powers by the Central Government,
y Any undertaking owned by a co-operative society formed and
registered under any Central, Provincial or state Act,
y Anyy financial
a c a institution.
st tut o .
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Dr. Kavita Srivastava
3/9/2010
Monopolistic trade practice
Section 2 ((i)) of the Act defines MTP while section 31 provides
p
for
investigation into such practices by MRTP commission
y Monopolistic trade practice is that which represents abuse of
market power in the production and marketing of goods and
services by eliminating potential competitors from market
y and taking advantage of the control over the market by charging
unreasonably
bl high
h h prices,
y preventing or reducing competition,
y limiting technical development,
development
y deteriorating product quality
y or byy adopting
p g unfair or deceptive
p
trade ppractices.
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Dr. Kavita Srivastava
3/9/2010
Unfair Trade Practice:
y Misleading advertisement and False Representation
y Falsely representing that goods and services are of a
particular standard
standard, quality
quality, grade
grade, composition or style
style.
y Falsely representing any second hand renovated or old goods
as new.
new
y Representing that goods or services, seller or supplier have a
sponsorship approval or affiliation which they do not have
sponsorship,
have.
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Dr. Kavita Srivastava
3/9/2010
y Making a false or misleading representation concerning need
for, or usefulness of goods or services.
y Giving to public any warranty
warranty, guarantee of performance that
is not based on an adequate test or making to public a
representation which purports to be such a guarantee or
warranty.
y False and misleading claims with respect to the price of goods
or services.
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Dr. Kavita Srivastava
3/9/2010
Restrictive Trade Practice:
Section 2(o) defines restrictive trade practices
y To
T maximise
i i profits
fit andd market
k t power, traders
t d often
ft attempt
tt
t
to indulge in certain trade practices which tend to obstruct
the flow of capital into the stream of production.
production
y It may also bring manipulation of prices or conditions of
delivery or affect the flow of supplies in the market so as to
impose unjustified costs.
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Dr. Kavita Srivastava
3/9/2010
MRTP and the New Industrial Policy
y MRTP Act became effective in June 1970
y Emphasis was placed on increasing productivity
y Major
M j amendments
d
t tto th
the A
Actt were carried
i d on in
i 1982 andd
1984 .
y MRTPC was set up
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Dr. Kavita Srivastava
3/9/2010
MONOPOLIES AND RESTRICTIVE
TRADE PRACTICE COMMISSION
y Complaints regarding monopolistic trade practice, unfair trade
practice and restrictive trade practice can be made to the MRTP
commission at the following address:
Director General
D
G
l (Investigation
(I
& Registration)
R
)
MRTPC
Bik
Bikaner
H
House
B k
Baracks
Shahjahan Road
New Delhi 110011
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Dr. Kavita Srivastava
3/9/2010
Procedure of action on complaint:
y Inquiry may be initiated through a complaint by an individual
y
y
y
y
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or registered consumer organisation.
Fact findingg investigation
g
is carried on byy the Director
General.
If no prima facie case is made, the complaint is dismissed,
else an order is passed to that effect.
The commission may restrain the party concerned from
carrying on the
h trade
d practices bby granting temporary
injunction.
Final order is passed.
passed Compensation may
ma be granted to the
complainant.
Dr. Kavita Srivastava
3/9/2010
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Dr. Kavita Srivastava
3/9/2010
Thank You
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Dr. Kavita Srivastava
3/9/2010