an overview of mrtp act, 1969
TRANSCRIPT
MONOPOLIES AND RESTRICTIVE TRADE PRACTICE (MRTP) ACT, 1969
BACKGROUND
• Passed in Parliament : 18.12.1969• Came into force : 01.06.1970• Recommended by Dutt Committee• Applicable to whole of India except
Jammu Kashmir• Significantly amended in 1982,
1984, 1985 and 1991
Prevent concentration of economic power in the hands of few rich
Provide control of monopoliesProhibit restrictive and unfair trade
practices
A commission will be set-up to look after the proceedings under this act
INTENT
GET TO KNOW THESE!• Abuse market in terms of
production and sales• Low quality product at
high cost
Monopolistic Trade Practice
• False representation of goods and services
• Bogus advertisements to mislead consumers
Unfair Trade
Practice
• Block flow of capital into production
• Prohibit competition
Restrictive Trade
Practice
Upon receiving a complaint from any trade association, consumer or a registered consumer association, or
Upon reference made to it by the Central Government or State Government
Upon an application to it by the Director General, or
Upon its own knowledge or information.
INQUIRY BY THE COMMISSION
o Summoning and enforcing the attendance of any witness and examining him on oath;
o Discovery and production of any document or other material object producible as evidence;
o Requisition of any public record from any court or office.o Issuing any commission for examination of witnesso Appearance of parties and consequence of non-
appearance.o To require any person to produce before it and to examine
and keep any books of accounts or other documents relating to the trade practice, in its custody.
o To require any person to furnish such information as may be in his possession in relation to the trade carried on by any other person.
o To authorize any of its officers to enter and search any undertaking or seize any books or papers, relating to that particular undertaking, if the commission suspects that such books or papers are being or may be destroyed, mutilated, altered, falsified or secreted.
POWER OF THE COMMISSION
I. Temporary Injunction Activities of the undertaking
charged with, will be stopped until further orders
II. Compensation The particular concern is liable to
pay the compensation to those who were affected
REMEDIES UNDER THE ACT
Not in force now Replaced by ‘Competition Act, 2002’ Came into force : 01.09.2009
Aim of the Act :• Eliminate practices having adverse effect on
competition• Promote and sustain competition• Protect interest of consumers• Ensure freedom of trade carried on by other
participants
CURRENT STATUS OF THE ACT
Case studyColgate Palmolive (India) Ltd. vs MRTP Act,1969Highlights: “Colgate Trigard Family Good Habits Contest” The commission alleged it to be:
¤ An unfair trade practice causing injury and loss to the consumers (of tooth brushes) and
¤ A restrictive trade practice eliminating competition among the manufacturers of tooth brushes
Colgate Palmolive (India) Ltd. won the case!
COMPREHEND…
THANK YOU!
Presented by:
BHARTI GOYAL D.III B.COM [CA]