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INTRODUCTION
In the new corporate and business world today where there is cut
throat competition the business persons daringly use unfair trade
practices to edge over the other. This may give them advantage for
short term but in long run it affects the organization and eventually
the entire industry.There is always been confusion regarding the
correct definition for unfair and restrictive trade practices, also the
about which practices to be considered as unfair. Let us first define
the term and the practices to be included.
DEFINITION
"unfair trade practice" means a trade practice which, for the purpose
of promoting the sale, use or supply of any goods or for the provisions
of any services, adopts any unfair method or unfair or deceptive
practice including any of the following practices, namely :-
(3) permits -
(a) the offering of gifts, prizes or other items with the intention
of not providing them as offered or creating the impression that
something is being given or offered free of charge when it is fully or
partly covered by the amount charged in the transaction as a whole.
• Offering any gifts, prizes or other items along with the goods
when the real intention is different, or
GUIDANCE NOTE
Most certainly not. Businesses are also big losers when it comes to
unfair trade practices. Firstly responsible businesses will lose sales to
disreputable businesses that engage in UTPs because the disreputable
firms:
• unfairly increase their sales to the detriment of responsible
businesses; and
• reduce their costs of purchase or manufacture.
Secondly UTPs can damage consumer confidence to the extent that
overall growth in the market is affected. This can happen when
consumers get overly wary about trying new products/services or new
businesses.