Unfair Trade Practices in India: A Comparative Analysis Between the Competition and Consumer Laws

Abstract

The term Unfair Trade Practice (UTPs) broadly refers to 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 which is prohibited by a statute or has been recognised as actionable under law or by a judgement of the court.

This research paper deals with the reason behind the incorporation of the concept of unfair trade practices to Consumer Laws rather making it a part of Competition Laws. Further the paper analyses the concept of unfair trade practices in India by comparing the provisions of Competition and Consumer Laws made for the concern. This research paper aims to highlight the position of UTPs in India and analyses the interface between competition law and consumer law in the theoretical framework and through the non-uniform understanding of ‘consumer welfare’ with respect to unfair trade practices that is interpreted in both the legislation.

Further this paper in detail will be dealing with, in various headings, the evolution of UTPs in MRTP, Consumer and Competition Act, the abolition of the MRTP Act, various steps taken under the Sachar Committee and the Raghavan Committee, the establishment of Competition Commission of India (CCI) and Competition Act, 2002, the position of UTPs in Consumer and Competition laws, the reason of incorporation of UTPs in Consumer Laws, the various components of UTPs and the authorities and agencies dealing with UTPs.

Keywords: Unfair Trade Practices (UTPs), Incorporation of UTPs, Consumer Welfare, Overlapping Provisions.