DEFINITION:

Unfair Trade Practices has been defined under section 2(47) of the Consumer Protection Act, 2019- "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 service, adopts any unfair method or unfair or deceptive practice. Some examples include:

1. False Representation: Making false or misleading statements about the quality, quantity, or grade of a product or service.

2. False Advertising: Advertising goods or services with false claims.

3. Hoarding or Destruction: Hoarding or destroying goods to manipulate market prices.

4. Fraudulent Offers: Making false offers or lotteries.

5. Warranty Deception: Misleading consumers about the warranty on a product.

 

 

STEPS FOR CONSUMERS WHEN ENCOUNTERING UNFAIR TRADE PRACTICES:

1. Identify the Unfair Trade Practice: Make a note of the incident, including any advertisements, receipts, or other evidence.

2. Contact the Seller/Service Provider: Initially, try to resolve the issue directly with the seller or service provider.

3. Consumer Helplines and Websites: Use consumer helplines such as the National Consumer Helpline (1800-11-4000) or websites like www.consumerhelpline.gov.in to report the issue.

4. Legal Notice: If the issue is not resolved, you may send a legal notice to the seller/service provider.

 

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HOW TO REGISTER A COMPLAINT:

1. Online Complaint: Visit the Consumer Complaints Portal at www.consumerhelpline.gov.in or use the Consumer Protection Act (CPA) website.

2. Physical Complaint: File a complaint at the District Consumer Disputes Redressal Commission (DCDRC), State Consumer Disputes Redressal Commission (SCDRC), or the National Consumer Disputes Redressal Commission (NCDRC).

3. Complaint Format: Ensure your complaint includes your details, details of the seller/service provider, a description of the unfair practice, and any supporting evidence.

 

 

APPLICABLE SECTIONS:

1. Consumer Protection Act, 2019: This act addresses consumer rights and provides a framework for addressing complaints regarding unfair trade practices.

   • Section 2(47): Defines unfair trade practices.

   • Section 10: Establishes the Central Consumer Protection Authority (CCPA).

   • Sections 35 to 39: Outline the procedure for filing complaints.

 

 

CONCERNED AUTHORITIES:

1. Central Consumer Protection Authority (CCPA): A regulatory authority established to protect, promote, and enforce the rights of consumers.

2. Consumer Disputes Redressal Commissions:

   • District Commission: For complaints where the value of goods/services and compensation claimed does not exceed ₹1 crore.

   • State Commission: For complaints where the value exceeds ₹1 crore but is less than ₹10 crores.

   • National Commission: For complaints exceeding ₹10 crores and appeals against the orders of the State Commission.

 

 

CASE LAWS:

1. Hindustan Unilever Limited vs. Consumer Education and Research Center: This case dealt with false advertisements and misleading information provided by the company.

2. Sahara India Real Estate Corporation Limited & Ors. vs. Securities and Exchange Board of India (SEBI): This case addressed fraudulent schemes and unfair trade practices in real estate.

3. Horlicks Ltd. vs. Heinz India (P) Ltd.: This case involved misleading advertisements and unfair comparison of products.

These case laws reflect the judiciary's stance on protecting consumer rights and penalizing unfair trade practices.

 

 

SUMMARY:

Consumers in India are protected under the Consumer Protection Act, 2019, from unfair trade practices. When encountering such practices, consumers can take steps to resolve the issue directly, use consumer helplines, or file formal complaints with the appropriate authorities. The Act provides a comprehensive framework for addressing these issues, with specific sections and authorities dedicated to enforcing consumer rights. Notable case laws further illustrate the application of these provisions in real-world scenarios.

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