Restrictive trade practices
Heaven 2011
(Querist) 22 December 2010
This query is : Resolved
Dear all,
I have a quarry. Say I have product ‘X’ and I am selling the product into market at Rs. 25/- per pcs. Now for better consumer orientation if I reduce the sale price to say Rs. 21/- and give a free gift ( it will definitely be an eye wash because the price of the gift will be that balance rs.4/-) like other companies are doing, will it be a Monopolistic and Restrictive Trade practice under MRTP Act? So far my knowledge goes the MRTP Act has been repealed and Competition Act has come into force. Kindly guide me.
Regards.
Raj Kumar Makkad
(Expert) 22 December 2010
As Competition Act, such prizes/awards are not prohibited and thus there is no violation of MRTP Act.
Devajyoti Barman
(Expert) 22 December 2010
Yes you are right that with the enactment of Competition Act the MRTP Act is abolished. However some of the provisions of it is still in operation and that is dealt by the Competition Tribunal nowadays in place of MRTP Tribunal.
Now your said strategy neither violate any provision of MRTP or amount to 'abuse of dominant posititon'as prescribed by the Competition Act.
