What is difference between Monopolistic Trade Practice, Unfair Trade Practice and Restrictive Trade Practice?
Any practice which indicates misuse of one’s power to abuse the market in terms of production and sales of goods and services was defined as Monopolistic Trade Practice. The objective of such practices is to eliminate competition, take advantage of monopoly and charge unreasonably high prices. This practice also deteriorates the product quality, limit technical development, prevent competition and adopt unfair trade practices.
Monopolistic trade practice is different from unfair trade practice. Unfair trade practice is the false representation and misleading advertisement of goods and services. It also includes falsely representing second-hand goods as new and misleading representation regarding usefulness, need, quality, standard, style etc of goods and services.
Restrictive Trade Practice is when the traders, in order to maximize their profits and to gain power in the market, often indulge in activities that tend to block the flow of capital into production. Such traders also bring in conditions of delivery to affect the flow of supplies leading to unjustified costs.”