Question

What is MRTP? How is it helpful in preventing RTPs and UTPs?

Answer 1

Answer:

MRTP (Monopolistic and Restrictive Trade Policies Act ) came into force on 1 June 1970. The law was enacted with the sole purpose of –

came into force on 1 June 1970. The law was enacted with the sole purpose of –“Achieving the highest possible production with least damage to people at large while securing maximum benefit".

Concepts Addressed under the Act

It is important to first understand the salient features that govern the Act in order to truly understand the scope of their applicability and the practical difficulties that arose in their implementation. Following are the concepts addressed under the Act –

Command and Control Approach –

• Restrictive Trade Practices– RTPs are activities that block the flow of capital or profits in the market. Some firms tend to control the supply of goods or products in the market either by restricting production or controlling the delivery. MRTPA discourages and prevents the firms from indulging in RTPs.

• Unfair Trade Practices – UTP is basically an act of false, deceptive, misleading or distorted representation of facts pertaining to goods and services by the firms. Section 36-A of the MRTPA prohibits firms from indulging in Unfair Trade Practices (UTPs). This provision was inserted by the landmark 1984 Amendment to the MRTPA.

hope it helps..