Following are the reasons for establishing consumer protection in India-
An “unfair trade practice” means a trade practice, which, for the purpose of promoting any sale, use or
supply of any goods or services, adopts an unfair method, or unfair or deceptive practice. Some of these practices
include:
1. False Representation
- When goods and services are not of stated standard, quality or grade;
- When the second hand, renovated goods are sold as new ones;
- When the seller does not have the required sponsorship, approval, affiliation;
- When goods and service do not have the claimed use, usefulness or benefit;
- When products/services do not have the claimed warranty/guarantee;
2. When the price of a product or service is misleading.
3. False and Misleading Advertisement for selling at a Bargain price.
4. Offering gifts, prizes, etc. to lure customers with no intention of providing them.
5. Selling goods which do not fall within the safety standards set up by a competent authority.
6. Hoarding or destroying goods with the intention of raising the cost of these or similar goods manufactured in
greater number so as to manipulate higher prices.
7. Manufacturing or offering spurious goods or adopting deceptive practices in the provision of services.