Q. Explain types of Unfair Trade Practices?
Following trade practices connected to advertising are held as Unfair Trade Practices under MRTP Act.
(i) Falsely representing that goods and services are of a particular standard grade , quality or model;
(ii) Falsely representing second-hand and renovated goods as new goods;
(iii) Falsely representing goods that have particular approval, sponsorship which such goods don't have;
(iv) Makes a false or else misleading claim regarding usefulness of any product like making claims about the product without a few documentation or support such as laboratory test;
(v) Gives assurance of performance or length of life of product which is not based on proper test;
(vi) Gives assurance of performance or length of life of product which isn't based on proper test;
(vii) Gives misleading discount proposal to attract the customers by offering higher discounts where as price-tags have been up-marked. In easy words even after discount the price charged will be equal to original price and discount scheme is only eyewash
(viii) Offers a few free gifts on the purchase of products while actually the cost of gift has been covered in the price of key product. In easy words price of product has been inflated so as to include cost of gift.
(ix) Ad of food products, using words 'cholesterol free', 'natural', 'fat free' etc. Are deceptive if these aren't certified by department of food and supplies.
(x) Ads not unveiling material negative effects/side effects of a product.
(xi) Holding contests is as well unfair if adequate disclosure isn't made regarding exact number of prizes to be awarded date of draw the persons in whose presence draw is to be made place of draw etc.
(xii) Endorsement of product by a renowned person without having testimonies regarding truthfulness of advertisement is unjust on the part of endorser.