The Monopolistic and Restrictive Trade Practices Act, 1969

The Monopolistic and Restrictive Trade Practices Act, 1969, was enacted

• To ensure that the operation of the economic system does not result in the concentration of economic power in hands of few,

• To provide for the control of monopolies, and

• To prohibit monopolistic and restrictive trade practices.

The MRTP Act extends to the whole of India except Jammu and Kashmir.

Unless the Central Government otherwise directs, this act shall not apply to:

1. Any undertaking owned or controlled by the Government Company,

2. Any undertaking owned or controlled by the Government,

3. Any undertaking owned or controlled by a corporation (not being a company established by or under any Central, Provincial or State Act,

4. Any trade union or other association of workmen or employees formed for their own reasonable protection as such workmen or employees,

5. Any undertaking engaged in an industry, the management of which has been taken over by any person or body of persons under powers by the Central Government,

6. Any undertaking owned by a co-operative society formed and registered under any Central, Provincial or state Act,

7. Any financial institution.

RESTRICTIVE TRADE PRACTICE

A restrictive trade practice is a trade practice, which

• Prevents, distorts or restricts competition in any manner; or

• Obstructs the flow of capital or resources into the stream of production; or

• Which tends to bring about manipulation of prices or conditions of delivery or effected the flow of supplies in the market of any goods or services, imposing on the consumers unjustified cost or restrictions.

INQUIRY INTO RESTRICTIVE PRACTICES

The Commission may inquire into any restrictive trade practice

• Upon receiving a complaint from any trade association, consumer or a registered consumer association, or

• Upon a reference made to it by the Central or State Government or

• Upon its own knowledge or information

RELIEF AVAILABLE

The commission shall if after making an inquiry it is of the opinion that the practice is prejudicial to the pubic interest, or to the interest of any consumer it may direct that –

• The practice shall be discontinued or shall not be repeated;

• The agreement relating thereto shall be void in respect of such restrictive trade practice or shall stand modified.

• The Commission may permit the party to any restrictive trade practice to take steps so that it is no longer prejudicial to the public interest

However no order shall be made in respect of

1. any agreement between buyers relating to goods which are bought by the buyers for consumption and not for ultimate resale;

2. a trade practice which is expressly authorised by any law in force.