Introduction

The term "Unfair Trade Practice" broadly refers to any dishonest, dishonourable, or deceptive
trade behaviour, as well as commercial deception of goods or services that are continuously sold,
that is prohibited by law or has been determined to be significant under the law by a court
judgement.
DEFINITION OF UNFAIR TRADE PRACTICES:

Section 2(47) of the Consumer Protection Act, 2019 defines the term unfair trade practices. It
states that “unfair trade practice means a trade practice which, for the purpose of the promoting
the sale, use or supply of any goods or for the provision of any services, adopts any unfair
method or unfair or deceptive practice including any of the following practices, namely”, and
specifies the unfair trade practices. These can be classified as under:

False Representation:

It states that any person/ business which makes the practice of any oral or written statements or
representations of the following will be Unfair trade practice:

• When suggests falsely that goods are of particular standard quality, quantity, grade,
composition, style or model.

• When falsely suggests that the services are of particular standard quality or quantity or grade.

• Falsely represent any old , rebuild or second hand goods as a new one.

• Falsely represents that goods or services have sponsorship or approval, performance,

characteristics, accessories, uses or benefits which they do not have.

• Represents falsely that the seller has any sponsorship or affiliation.

• When makes a false misleading presentation about the usefulness or need for any goods or
services.

• Provides any warranty or guarantee about the performance or efficiency or length of life of
goods that is not based on proper test.

• If a promise is made which is materially misleading, regarding to replace, maintain or repair the
goods , where such promises are not reasonable to fulfil.

• Misleads about the price of the goods or services, available in market.

• Gives false or misleading facts disparaging the goods services or trade of another person.
False offer of Bargain Price:

It is a practice when an advertisement is published in a newspaper or otherwise it states that

goods or services are offered at bargain prices, but in reality there is no such intention to offer
the same to offer or for a reasonable period or reasonable quantity it may amount to unfair trade
practice. The bargaining price here means :

• The price which is stated in the advertisement which may suggest that the price is actually the
lesser than the ordinary price.

• Any person who sees the advertisement believes that the price is actually better than the price
which they are ordinary sold.

Free Gift Offer and Prize scheme:

Unfair trade practices can also include gifts and prize schemes, the business offer to the
customers with ulterior motive. This may include when:

• When gifts, prizes or any other items are offered along with the goods under which intention is
different, or

• Representing that something is given for free but in actual the cost or part of the cost is being
charged.

• Offering any prizes by conducting contest, lottery or any game of chances to the buyers but
with the real intention was to promote sales or business.

Non-compliance of Prescribed Standards:

When any goods are sold or supplied to the customer which does not adhere with the standards
prescribed by the competent authority, with regards to its performance, packaging, finishing,
content, design etc, in order to prevent risk and injury of the consumer using it, then such a
practice shall amount to Unfair Trade practice.

Hoarding or destruction:
Any person practicing any activity that permits the hoarding or destruction of goods or refusing
to sell the goods , with the intention to increase the price of the good in future or increase the
price of similar goods future is shall be an unfair trade practice.

Understanding Unfair Trade Practices and Consumer Protection Laws

In today's world of shopping and services, it's not uncommon to come across businesses using
tricky tactics to get ahead. These tactics, known as unfair trade practices, can leave us feeling
cheated or disappointed. But fear not! There are laws in place to protect us and keep things fair.

Unfair trade practices can come in many shapes and sizes. It could be a company saying their
product does something amazing when it really doesn't. Or maybe they promise a warranty but
then don't deliver when something goes wrong. Sometimes, it's even worse – they might sell us
something that's not safe to use or is just plain terrible quality. These practices are all about
making money, without caring if we're getting a good deal or not.

Enter the Consumer Protection Act of 2019. This law is like our shield against unfair tricks. It
says that any method or practice a business uses to trick us into buying something – that's an
unfair trade practice. So if a company lies to us about what their product can do, or if they don't
give us what they promised, we can fight back! This law gives us the power to stand up for
ourselves and demand what's right.

But that's not all. There's also the Competition Act of 2002, which is like our guardian of fair
play in the marketplace. It says that companies can't team up to cheat us or keep other businesses
from competing. And if a company gets too big and starts bossing everyone around, that's a big
no-no too. The Competition Act keeps the playing field level so that everyone has a fair chance
to succeed.

Let's break it down with an example. Imagine a company advertises a miracle product that will
solve all your problems. You buy it, but it doesn't work at all – total disappointment! That's
where the Consumer Protection Act steps in. It says the company can't lie to you like that. Or
maybe a big company starts buying up all the little ones, so they're the only game in town. That's
not fair to the little guys or to us as consumers. The Competition Act says they can't do that
either.
These laws are like our superheroes, protecting us from unfairness and keeping businesses
honest. They make sure that when we spend our hard-earned money, we're getting what we pay
for – and then some!

So next time you feel like you've been tricked or cheated by a business, remember: you have
rights. The Consumer Protection Act and the Competition Act are on your side. With these laws
backing us up, we can shop and use services with confidence, knowing that fairness and honesty
are always the name of the game.

Unfair Trade Practices in Various Sectors:

Pharmaceutical Sector :- There has never been an end to the rivalry between suppliers of
brand-name and generic drugs. These competitions would eventually turn negative and result in a
number of instances of unfair business practises in the pharmaceutical industry. It is well known
that the pharmaceutical industry has a significant impact on doctors' prescribing behaviours when
they are in charge of the patient, who is the final user of the drug in question. Promotion and
knowledge must be distinguished from one another. A medical representative may have
precompetitive impacts while informing doctors about new medications and their benefits and
efficacy.

Food Sector :- Concerns over the quality and quantity of food products, as well as unfair trade
practices, have spread around the world. Almost everyone has heard of instances of chemicals
being intentionally added, such as additives and adulterants, to products during production,
processing, packing, and storage in order to conceal inferior goods, contaminate products or
generate unauthorized profits. Such unethical and unfair business actions are extremely
dangerous since they pose a serious hazard to consumers' health. In May, during a raid at a store
of a mango dealer in Pune, Food and Drug Administration (FDA) authorities took 500 weight
unit mangoes worth Rs. 25,000 that were being aged with the use of a chemical called calcium
carbide. Under the restrictions of the Food Adulteration Act, the use of inorganic compounds to
artificially ripen food is illegal.

Insurance Sector :- People view insurance as a crucial area of the financial services sector, and
the number of insurance customers is steadily rising. As customers grow, so does the issue of
unfair business practices in this industry. Insurance is a guarantee that the customer will be able
to get a certain benefit or compensation for a loss or injury in the case of a future contingent
occurrence. A lack of commission would result in a failure to fulfill that commitment or a delay
in doing so. Consequently, it can be seen that a lot of dependence is put on the public's
confidence in the delivery of the created assurances in the insurance industry. Businesses
frequently use alluring offers to entice customers, but then try to increase their commitment.
They have a number of extensive exclusion and exemption clauses that are helpful to large
businesses.

ROLE OF JUDICIAL JUDGEMENTS:

Any person, who is subjected to unfair trade practice, can get remedied under the Consumer
Protection Act, under which there are Consumer forum which have been set up for speedy
redressal and remedy. As per the act, there are three commissions set up at district, state and
central level, which are District Dispute Redressal commission, State Dispute Redressal
Commission and National Dispute Redressal commission. This courts have the jurisdiction to try
the cases on Unfair trade and practices. Along with them, people can also approach, district,
High Court or Supreme court for the same.
Case Laws:

In Baglekar Akash Kumar v. More megastore Retail Limited case,

The complainant purchased a certain product from More Megastore. It

was submitted that a plastic carry bag was supplied by More Megastore

on collecting Rs 3 towards its costs. This bag had the company’s name and

logo printed on it. It was alleged that More Megastore used the

complainant as its advertising agent, that too at the cost of the

complainant. Further, it was alleged that this amounted to unfair trade

practice under Section 2(1)(r) of the Consumer Protection Act 1986.

[corresponding Section 2(47) of the Consumer Protection Act, 2019]. The

Commission said supermarkets which charge for carry bags that have the logo of the
company will be considered Unfair trade practices.

In case of Mr. Supriyo Ranjan Mahapatra v. Amazon Centre Development Centre India

Pvt Ltd, Bench observed that “When there is an advertisement made for

offer placed by the OP and made the offer as per the material available on

record and complainant placed the order and same got confirmed, the

agreement is complete.” Another aspect to be noted was that, when the

OP had allowed Rockery Marketing at his platform as per written version,

the responsibility of the OP could not be lost sight of. Since there was a

breach of contract by OP, OP is held to be liable to pay the damages.

Commission agreed with District Forum’s observation that OP not only

negligent in providing service but was also involved in unfair trade

practice. Taking all the factors discussed above for consideration, Bench

concluded that compensation awarded should be of Rs 30,000 for unfair

trade practice and punitive damages of Rs 10,000. Further, with regard to

the cost of litigation Rs 5000 needs to be awarded. On failing to make the

above payments to the complainant within 30 days, the said amounts will

carry interest at the rate of 12% per annum.

Conclusion

Huge sellers frequently subject consumers to unethical commercial tactics, and consumers fall
victim to their ruthless economic rivalry. Due to customers learning about their rights under the
Consumer Protection Act and pursuing recourse against unfair business practices, consumers in
today's modernized world are paying more attention. Given the options available in Indian
statutes and legislation and the numerous proactive policies and programmers being
implemented by the government, the future of the system of consumer justice in our nation
appears promising. The cluster of uneducated consumers needs to be made aware of their rights
so they can protect themselves from monopolists' unjust business activities. The government
should take steps to inform people about the several complaint procedures they can use if their
legal rights as a customer are violated.
Refrences

https://www.scconline.com/blog/post/2021/01/20/amazon-to-pay-rs-45000-for-rowing-back-
on-confirmed-order-for-laptop-by-law-student-cant-evade-responsibility-when-it-allowed-
rockery-marketing/

https://www.legallore.info/post/unfair-trade-practices-in-india

https://www.investopedia.com/terms/u/unfair-trade-practice.asp

https://indiankanoon.org/doc/117738049/

https://blog.ipleaders.in/consumer-protection-act-2019-2/
#What_are_unfair_trade_practices_under_Consumer_Protection_Act_2019