CONSUMER PROTECTION: UNFAIR TRADE PRACTICES IN INDIA

AUTHOR – SINDHU SATHISH NADIG, STUDENT AT ALLIANCE SCHOOL OF LAW, ALLIANCE UNIVERSITY, BANGALORE.

BEST CITATION – SINDHU SATHISH NADIG, CONSUMER PROTECTION: UNFAIR TRADE PRACTICES IN INDIA, ILE LEX SPECULUM (ILE LS), 1 (1) OF 2023, PG. 177-184, APIS – 3920 – 0036 | ISBN – 978-81-964391-3-2.

ABSTRACT

Activities that go against the principle of fair competition are generally considered to be unfair trade practices. These practices harm consumers and other market participants. The Consumer Protection Act, 2019, defines “Unfair Trade Practices” under Section 2(47). It says that practices are said to be unfair when manufacturers manufacture spurious goods or provide defective services, when they don’t issue bills or memos when a consumer purchases a product, when they refuse to take back goods or services rendered and not refunding the consideration taken for the purchase of the same. Disclosing the consumer’s personal information also falls under the bracket of unfair trade practices. These practices can have several ill effects on consumers, economically and socially. It misleads them, exploits their lack of knowledge, and exposes them to unsafe products or services. By distorting resource allocation and lowering production and distribution efficiency, unfair trade practices can cause economic inefficiency. Unfair practices are frequently linked to crime, including bribery and money laundering, and corruption. With a decline in faith in the market and the institutions in charge of regulating it, they can weaken societal trust. If we talk about unfair practices by large corporations, firstly they have an advantage over smaller businesses and firms, secondly, they hinder the growth of entrepreneurship startups and small businesses.

The Act gives the federal government the authority to announce regulations governing unfair commercial practices and offers fines and financial relief for consumers who are harmed by such conduct. The Act also offers fast and efficient remedies for consumers who have been harmed as a consequence of unfair trade practices and gives customers the ability to bring complaints before consumer commissioners at the district, state, and national levels. Overall, India’s Consumer Protection Act, 2019 offers a thorough framework for combating unfair business practices and defending consumers’ rights.

Keywords: Consumer Protection Act (2019), Unfair Trade Practices, Consumer, Economic and Social inefficiency, crime, bribery, money laundering, corruption, efficient remedies.