Unfair Trade Practice - Definition - Law Dictionary Home Dictionary Definition unfair-trade-practice

Definition :

Unfair trade practice, means a trade practice which, for the purpose of promoting the sale, use or supply any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice. [Consumer Protection Act, 1986 (68 of 1986), s. 2(r)]

Section 36A of the Monopolies and Restrictive Trade Practice Act, 1969 defines 'Unfair Trade Practice': In this part, unless the context otherwise requires, '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 services, adopts one or more of the following practices and thereby causes loss or injury to the consumers of such goods or services, whether by eliminating or restricting competition or otherwise, namely: (1) The practice of making any statement, whether orally or in writing or by visible representation which falsely represents that the goods are of a particular standard, quality, grade, composition, style or model; represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have. The definition mentioned above is not inclusive or flexible, but specific and limited in its contents. The object is to bring honesty and truth in the relationship between the manufacturer and the consumer. Lakhanpal National Ltd. v. M.R.T.P. Commission, AIR 1989 SC 1692: (1989) 3 SCC 251: (1989) 2 SCR 979. (Monopolies and Restrictive Trade Practices Act, 1969, s. 36A)