Legislation For Unfair Trade Practices
- IJLLR Journal
- Apr 22
- 2 min read
Tri Lokshana, BBA LLB (Hons.), The Tamil Nadu Dr. B.R. Ambedkar School of Excellence in Law University, Chennai
ABSTRACT
This paper attempts to bring an understanding of the ground level reality of the trade practice in which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practices, especially in places like airports, five star hotels, shopping malls and multiplexes where the balance of the bargaining power is heavily tilted in the favour of these institutions and also study the treatment of the same under the laws which are currently in effect. It also deals with the reason behind the incorporation of the concept of an unfair trade practice to Consumer Laws rather making it a part of Competition Laws. Further, the paper analyses the concept of unfair trade practices in India by comparing the provisions of Competition and Consumer Laws made for the concern. The Unfair trade practices refer to unethical, deceitful, or fraudulent methods employed by businesses to gain an undue advantage in the market or exploit consumers. These practices distort competition and violate consumer rights, necessitating robust legal frameworks to protect interests and ensure fairness. A variety of legal initiatives have been adopted and guidelines and regulations have been framed, both at the international and domestic level, in order to discourage and protect the abuse of consumers. India has a special statute, the Consumer Protection Act 1986, to protect the interests of the consumer.
The concept of unfair trade practices has evolved significantly. Initially tackled under the Indian Penal Code, 1860, and through civil remedies, the complexity of modern commerce demanded more specialized laws. The MRTP Act, 1969, introduced restrictive trade practices. The Competition Act, 2002, replaced it to address anti-competitive practices comprehensively. Meanwhile, consumer protections were enhanced under the Consumer Protection Act, 1986, revised in 2019.
Keywords: Unfair Trade Practices, Consumers, Competition laws, deceptive practices
