Scribd
Upload
692 views10 pages

Monopolies and Restrictive Trade Practice (MRTP) Act, 1969

This document summarizes the key aspects of the Monopolies and Restrictive Trade Practices (MRTP) Act of 1969 in India. It was passed to prevent concentration of economic power, control monopolies, and prohibit unfair trade practices. A commission was established to investigate complaints regarding these issues and had powers like summoning witnesses, discovery of documents, and search and seizure. Remedies under the act included temporary injunctions and compensation. The act was replaced in 2002 by the Competition Act to promote competition and protect consumer interests. A case study of Colgate Palmolive contesting unfair trade practice allegations is also briefly described.

Uploaded by

rohan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
692 views10 pages

Monopolies and Restrictive Trade Practice (MRTP) Act, 1969

This document summarizes the key aspects of the Monopolies and Restrictive Trade Practices (MRTP) Act of 1969 in India. It was passed to prevent concentration of economic power, control monopolies, and prohibit unfair trade practices. A commission was established to investigate complaints regarding these issues and had powers like summoning witnesses, discovery of documents, and search and seizure. Remedies under the act included temporary injunctions and compensation. The act was replaced in 2002 by the Competition Act to promote competition and protect consumer interests. A case study of Colgate Palmolive contesting unfair trade practice allegations is also briefly described.

Uploaded by

rohan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

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
INTENT
 Prevent concentration of economic power in the
hands of few rich
 Provide control of monopolies
 Prohibit restrictive and unfair trade practices

A commission will be set-up to look after the


proceedings under this act
GET TO KNOW THESE!

Monopolistic • Abuse market in terms of


production and sales
Trade Practice • Low quality product at high cost

• False representation of goods and


Unfair Trade services
Practice • Bogus advertisements to mislead
consumers

Restrictive • Block flow of capital into


production
Trade Practice • Prohibit competition
INQUIRY BY THE COMMISSION
 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.
POWER OF 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 witness
o 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.
REMEDIES UNDER THE ACT
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
CURRENT STATUS OF 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
COMPREHEND…
Case study
Colgate Palmolive (India) Ltd. vs MRTP Act,1969
Highlights:
 “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!
THANK YOU!

Presented by:

BHARTI GOYAL D.
III [Link] [CA]

You might also like