Unfair Trade Practice
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Unfair Trade Practice

Unfair Trade practice Unfair trade practice means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely :

Unfair Trade practice

Unfair trade practice means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely :

? the practice of making any statement, whether orally or in writing or by visible representation

which:

a) falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or model,

b) falsely represents that the services are of a particular standard, quality or grade,

c) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods,

d) represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have,

e) Represents that the seller or the supplier has a sponsorship or approval of affiliation which such seller or supplier does not have,

f) makes a false or misleading representation concerning the need for or the usefulness of any goods or services,

g) gives to the public any warranty or guarantee of the performance, efficiency or length of life a product or of any goods that is not supported on an sufficient or proper test thereof, provided that where a defense is raised to the consequence that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defense shall lie on the person raising such defense

h) Make to the public a illustration in a form that purports to be :

(i) a service contract or warranty of a product or of any goods or services, or

(ii) a promise to replace, sustain or refurbish an article or any part thereof or to repeat or continue a service until it has attained a particular consequence, if such ostensible warranty or guarantee or promise is significantly misleading, or if there is no sensible prospect that such warranty, guarantee or pledge will be carried out,

This definition of unfair trade practice is broader than the definition given under the MRTP ACT. It covers unreasonable and misleading guarantees and warranties, bargain sales, conduct of interest, lottery, game of chance for promoting a product, sale of goods that do not comply with prescribed standards, hoarding or destruction of goods, or refusal to sell goods or services in order to push up prices which are prejudicial to consumer interest.

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