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Monopolies and Restrictive Trade Practices Act,1969

Act No : 54


Section : Keeping the register.

36. Keeping the register. (1)For the purposes of this Act, the 1[Director General] shall keep a register in the prescribed form and shall enter therein the prescribed particulars as regards agreements subject to registration. (2) The 1[Director General] shall provide for the maintenance of a special section of the register for the entry or filing in that section of such particulars as the Commission may direct, being- (a) particulars containing information, the publication of which would, in the opinion of the Commission, be contrary to the public interest ; (b) particulars containing information as to any matter being information the publication of which, in the opinion of the Commission, would substantially damage the legate mate business interests of any person. (3) Any party to an agreement required to be registered under section 35 may apply to the 1[Director General.] (i) for the agreement or any part of the agreement to be excluded from the provisions of this Chapter relating to the registration on the ground that the agreement or part thereof has no substantial economic significance, or (ii) for inclusion of any provision of the agreement in the special section, and the 1[Director General] shall dispose of the matter in conformity with any general or special directions issued by the Commission in this behalf. PART B Unfair Trade Practices [36A. Definition of unfair trade practice. In this Part, unless the context otherwise requires, "unfair trade practice", means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any services, 3[adopts any unfair method or unfair or deceptive practice including any of the following practices,] namely:-- (1) the practice of making any statement, whether orally or writing or by visible representation which,- (i) falsely represents that the goods are of a particular standard, quality, 4[quantity,] grade, composition, style, or model; (ii) falsely represents that the services are of a particular standard,quality or grade; (iii) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods; (iv) represents that the goods or services have sponsorship, approval,. performance, characteristics, accessories, uses or benefits which such goods or services do not have; (v) represents that the seller or the supplier hag a sponsorship or approval or affiliation which such seller or supplier does not have; (vi) makes a false or misleading representation concerning the need for, or the usefulness of, any good, or services; (vii) gives to the public any Warranty or guarantee of the performance, efficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof: Provided that where a defence is raised to the effect that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defence shall lie on the person raising such defence; (viii) makes to the public a representation in a form that purports to be- (i) a warranty or guarantee of a product or of any goods or services; or (ii) a promise to replace, maintain or repair an article or any part thereof or to repeat or continue a service until it has achieved a specified result, if such purported warranty or guarantee or promise is materially misleading or it there is no reasonable respect that such warranty, guarantee or promise will be carried out; (ix) materially misleads the public concerning the price at which a product or like products or goods or services, have been, or are, ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the relevant market unless it is clearly specified to be the price at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made; (x) gives false or misleading facts disparaging the goods, services or trade of another person. Explanation.-For the purposes of clause (1), a statement that is-- (a) expressed on an article offered or displayed for sale, or on its wrapper or container;or (b) expressed oil anything attached to, inserted in, or accompanying, an article offered or displayed for sale, or on anything on which the article is mounted for display or sale, or (c) contained in or on anything that is sold, sent, delivered, transmitted or in any other manner whatsoever made available to a member of the public, shall be deemed to be a statement made to the public by, and only by, the person who had caused the statement to be ;so ex- pressed, made or contained; (2) permits the publication of any advertisement whether in any newspaper or otherwise, for the sale or supply at a bargain price, of goods or services that are not intended to be offered for sale or supply at the bargain price, or for a period that is, and in quantities that are reasonable, having regard to the nature of the market in which the business is carried on, the nature and of the advertisement. Explanation.-For the purpose of clause (2), "bargain price" means- (a) a price that is stated in any advertisement to be a bargain price, by reference to an ordinary price or otherwise, or (b) a price that a person who reads, hears, or sees the advertisement, would reasonably understand to be a bargain price having regard to the prices at which the product advertised or like, products are ordinarily sold; (3) Permits (a) the offering of gifts, prizes or other items with the intention of not providing them as offered or creating the impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole, (b) the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly the same, use or supply of any product or any business interest; (4) permits the sale or supply of goods intended to be used or are of a kind likely to be used, by consumers, knowing or having reason to believe that the goods do not comply with the Standards prescribed by competent, authority relating to performance, composition, contents, design, constructions, finishing or packaging as are necessary to prevent or reduce the risk of, injury to the person using the goods; (5) permits the hoarding or destruction of goods, or refuses to sell the goods or to, make them available for sale, or to provide, any service, if such hoarding or destruction or refusal raises or tends to raise or is intended to raise, the cost of those or other similar goods services. 36B. Inquiry into unfair trade practices by Commission. The Commission may inquire into any unfair trade practice,- (a) upon receiving a complaint of facts which constitutes such practice 5[from any trade association or from any consumer or a registered consumers' association, whether such consumer is a member of that consumers association or not] or" (b) upon a reference made to it by the Central Government or a State Government; (c) upon an application made to it by the Director General; or (d) upon its own knowledge or information. 36C. Investigation by the Director General before an issue of process in certain cases. The Commission may, before issuing any process requiring the attendance of the person against whom an inquiry (other than an inquiry upon an application by the Director General) may be made under section 36B, by an order, require the Director General to make, or cause to be made, a preliminary investigation in such manner as it may direct and submit a report to the Commission, for the purpose of satisfying itself that the matter requires to be inquired into. 36D. Powers which may be exercised by the Commission in an unfair trade practice. The Commission may inquire into any unfair trade practice which may come before it for inquiry and, if, after such inquiry, it is of opinion that the practice is prejudicial to the public interest, or to the interest of any consumer or consumers generally it may, by order direct that- (a) the practice shall be discontinued or shall not be repeated. 7* * * (b) any agreement relating to such unfair trade practice shall be void or shall stand modified in respect thereof in such manner as may be specified in the order. 8[(c) any information, statement or advertisement relating to such unfair trade practice shall be disclosed issued or published, as the case may be, in such manner as may be specified in the order.] (2) The Commission may, instead of making any order under the section, permit any party to carry on any trade practice, if it so applied and takes such steps within the time specified by the Commission as may be necessary to ensure that the trade practice is no longer prejudice to the public interest or to the interest of any consumer or consumers generally and, in any such case if the Commission is satisfied that necessary steps have been taken within the time so specified, it may decide not to make any order under this section in respect of that trade practice. (3) No order shall be made under sub-section (1) in respect of any trade practice which is expressly authorised by any law for the time being in force. 36E. Power relating to restrictive trade practices may be exercised or performed in relation to unfair trade practiices. Without prejudice to the provisions of section 12A, section 12B and section 36D, the Commission, Director General or any other person authorised in this behalf by the Commission or Director General, may, exercise, or perform, in relation to any unfair trade practice, the same power or duty which it or he is empowered or required, by or under this Act to exercise, or perform, in relation to a restricted trade practice] ---------------------------------------------------------------------- 1. Subs. by Act 30 of 1984, s.2 (w.e.f. 1.8.1984) 2. Ins. by s.30, ibid. (w.e.f. 1-8-1984) 3. Subs. by Act 58 of 1991 s.14 (w.e.f. 27-9-1991) 4. Ins. by s.14 ibid (w.e.f. 27-9-1991) 5. Subs by Act 74 of 1986, s.5 (w.e.f. 1.6. 1984) 6. Subs by Act 58 of 1991, s.15 (w.e.f. 27- 9-1991) 7. Omitted by s.16 ibid (w.e.f. 27-9-1991) 8. Ins by s.16 ibid (w.e.f. 27-9-1991) ---------------------------------------------------------------------- 37


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