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
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 thatâ€“
- 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
- any agreement between buyers relating to goods which are bought by the buyers for consumption and not for ultimate resale;
- a trade practice which is expressly authorised by any law in force.