What Are Unfair Trade Practices? Explained Briefly.


According to section 2(1)(r), it means a trade practice in which a trader, for the purpose of promoting the sales (or) supply (or) use of any goods (or) for the provision of any service, adopts any unfair method (or) unfair (or) deceptive practice. It includes any of the following practices.

1. The practice of making any statement whether orally (or) in writing (or) by visible representation which:-

a) Falsely represents that the goods are of a particular standard, quantity, quality (or) grade composition, style (or) model.

b) Falsely represents that the services are of a particular standard, quality (or) grade.

c) Falsely represents any re-build, second hand, renovated, reconditioned (or) old goods as new goods.

d) Represent that the goods (or) services have sponsorship, approval, performance, characteristics, accessories, uses (or) benefits which such goods (or) services do not have;

e) Represents that the seller (or) the supplier has a sponsorship (or) approval (or) affiliation of which such seller or supplier does not have.

f) Makes a false (or) misleading representation concerning the need for (or) the use of any goods (or) services.

g) Gives to the public any warranty (or) guarantee of the performance, efficacy (or) length of life of a product (or) of any goods that are not based on an adequate or proper test thereof.

h) Makes to the public a representation in a form that purports to be a warranty (or) guarantee of a product (or) any goods (or) services (or) a promise to replace, maintain (or) repair an article (or) any part thereof (or) to repeat (or) continue a service until it has achieved a specific result if such purported warranty (or) guarantee (or) promise is materially misleading (or) if there is no reasonable prospect that such warranty (or) guarantee (or) promise will be carried out.

i) Materially misleading the public concerning the price at which a product (or) goods (or) services, have been (or) ordinarily sold (or) provided.

j) Gives false statement (or) misleading facts disparaging the goods, services (or) trade of another person.

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 the business of the advertisement.

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