DEFINITION:

Restrictive Trade Practices has been defined under section 2(41) of the Consumer Protection Act, 2019- "Restrictive trade practice" means a trade practice which tends to bring about manipulation of price or its conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include—

(i) delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price;

(ii) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent for buying, hiring or availing of other goods or services.

In India, restrictive trade practices were primarily regulated by the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act). However, with the advent of the Competition Act, 2002, the MRTP Act has been repealed, and RTPs are now governed under the new Act.

 

 

STEPS FOR CONSUMERS WHEN ENCOUNTERING RESTRICTIVE TRADE PRACTICES:

1. Identify the Problem:

   • Recognize the restrictive trade practice being encountered (e.g., price fixing, market allocation, bid-rigging, or tying arrangements).

2. Gather Evidence:

   • Collect relevant evidence such as contracts, receipts, communications, and any other documentation that supports the claim of restrictive trade practices.

3. Seek Legal Advice:

   • Consult with a lawyer specializing in competition law to understand the nuances of the case and the best course of action.

4. Contact Consumer Organizations:

   • Approach consumer protection organizations for guidance and support.

 

 

HOW TO REGISTER A COMPLAINT:

1. Filing a Complaint with the Competition Commission of India (CCI):

   • Consumers can directly file a complaint with the CCI if they believe there is a case of restrictive trade practices.

2. Steps to File a Complaint:

   • Prepare the Complaint: Include detailed information about the parties involved, the nature of the restrictive trade practice, and the impact on the consumer or market.

   • Documentation: Attach all relevant documents and evidence.

   • Submit the Complaint: File the complaint online through the CCI website or submit it in person/by mail to the CCI office.

 

 

APPLICABLE SECTIONS AND LEGAL FRAMEWORK:

1. Competition Act, 2002:

   • Section 3: Prohibits anti-competitive agreements.

   • Section 4: Prohibits abuse of dominant position.

   • Section 19: Powers of the CCI to inquire into certain agreements and dominant position of enterprises.

   • Section 26: Procedure for inquiry under Section 19.

   • Section 27: Orders by the Commission after inquiry into agreements or abuse of dominant position.

 

 

CONCERNED AUTHORITIES:

1. Competition Commission of India (CCI):

   • The primary authority responsible for enforcing the Competition Act, 2002, and addressing issues related to anti-competitive practices, including restrictive trade practices.

2. National Company Law Appellate Tribunal (NCLAT):

   • Hears appeals against the orders of the CCI.

 

 

CASE LAWS:

1. Automobile Dealers vs. Hindustan Petroleum Corporation Ltd. (2005):

   • A case where dealers alleged RTP by Hindustan Petroleum, highlighting the scope and application of the MRTP Act before the enactment of the Competition Act.

2. Excel Crop Care Limited vs. CCI (2017):

   • The Supreme Court upheld the CCI's order imposing a penalty on Excel Crop Care Limited for engaging in collusive bidding, an RTP under the Competition Act.

3. Belaire Owners' Association vs. DLF Limited (2014):

   • CCI imposed a penalty on DLF Limited for abusing its dominant position by imposing unfair conditions in its agreements with apartment buyers.

 

SUMMARY:

Restrictive trade practices harm consumers by limiting competition, leading to higher prices, fewer choices, and reduced innovation. These practices, such as price-fixing and monopolies, unfairly restrict market dynamics, negatively impacting consumer welfare and economic efficiency. By following these steps and understanding the relevant legal provisions, consumers can effectively address and challenge restrictive trade practices in India.

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