Question

Describe the meaning and regulation of restrictive trade practices under the Consumer Protection Act.

Answer 1

1. The Act defines restrictive trade practice as any practice that manipulates prices, delivery conditions, or market flow to impose unjustified costs or restrictions on consumers.
2. This includes delays in supplying goods or services beyond the agreed-upon period, which may result in price increases.
3. Restrictive Trade Practices are actions taken by producers that manipulate prices, delivery circumstances, or market supply flows.
4. Restrictive trade practices are forbidden under the Consumer Protection Act, 1986.
5. The Consumer Protection Act aims to prevent consumer exploitation while preserving their rights. The Act only applies to purchases made for personal use.
6. Judicial statements have determined that a small-scale firm conducted by an entrepreneur or Hindu undivided family can seek a consumer forum if the commodities acquired are used to make a living.
7. A cab driver who owns and operates a taxi is considered a consumer under the Consumer Protection Act, although an individual who hires another driver is not.