KSLU Corner™ New AIBE previous QP

unfair trade practice

English · Contract and commercial

Meaning. A trade practice that uses unfair or deceptive methods to promote the sale or supply of goods or services.

Defined in Section 2(47) of the Consumer Protection Act, 2019. It includes false representations about the quality, standard or price of goods or services, misleading advertisements, bargain offers not genuinely available, schemes such as gifts and lotteries meant to promote sales, sale of goods not meeting safety standards, hoarding, refusal to take back defective goods, and disclosing a consumer's personal information without good reason.

A consumer may complain to the District, State or National Commission, which can order refunds, compensation and discontinuance of the practice. The Central Consumer Protection Authority can also act against unfair trade practices and misleading advertisements.

Example

Advertising a “50% sale” on prices first inflated for the purpose is an unfair trade practice under Section 2(47).

In Indian law

  • Section 2(47), Consumer Protection Act, 2019

See also

consumer · deficiency in service · standard form contract

Read more in the study notes

← Back to the dictionary