Question

Resale price maintenance is a_______________.

• A. Restrictive trade practice
• B. Monopolistic trade practice
• C. Unfair trade practice
• D. None of the above

Answer 1

The correct option is A Restrictive trade practice

Consumer Protection Act, 1986, restrictive trade practice means a trade practice which tends to bring about manipulation of price or conditions of delivery or to affect flow of supplies in market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions .To regulate advertising, in 1984, Parliament inserted a chapter on unfair trade practices in the Monopolies and Restrictive Trade Practices Act, 1969.

The Monopolies and Restrictive Trade Practices Act was intended to curb the rise of concentration of wealth in a few hands and of monopolistic practices.