Unfair Trade Practices and Institutional

Transcript:Unfair Trade Practices and Institutional:
Unfair Trade Practices and Institutional Challenges in India: An Analysis GIZ STAKEHOLDER CONSULTATION WORKSHOP April 1-2, 2013; New Delhi Presentation Outline Terms of Reference Unfair Trade Practices: Definitions Why are UTPs Bad? Legal and Institutional Framework of UTP in India Analyses of Regulatory Structure Legal and Institutional Framework – Globally Learning’s from International Experience Challenges and Recommendations Way Forward 2 Terms of Reference 3 Analyse treatment of UTPs under Indian law to highlight institutional challenges faced and suggest an efficient approach to address the identified challenges Identify the nature of UTPs currently existing in India Determine institutional challenges Propose recommendations on how UTPs can be effectively addressed based on national and international experience The study was completed in 6 week’s time and is mainly based on desk research and interviews of relevant stakeholders, that included regulators, research institutions, subject expert, lawyers, etc. Objective Scope of Study Challenge Definitions 4 World Bank and OECD Model Competition Law Paris Convention In India Section 2(1)(r) of the Consumer Protection Act, 1986 defines UTP to mean a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice, and includes, inter alia, the following: making any statement, whether orally or in writing or by visible representation which: falsely represents about goods or services relating to its standard, quality, price, value, nature, etc.; gives false or misleading facts disparaging the goods, services or trade of another person; permitting the publication of any advertisement for the sale or supply at a bargain price of goods or services not intended to be so offered; permitting the offering of gifts, prizes or other items with the intention of not providing them as offered; withholding from the participants of any scheme offering gifts, prizes or other items free of charge, on its closure the information about final results of the scheme; permitting the hoarding or destruction of goods; and manufacturing spurious goods or offering such goods for sale or adoption of deceptive practices in the provision of services. 5 Definitions: India Why are UTPs Bad….. Frequent and widespread incidences of UTPs in India due to: Introduction of globalisation; Technological innovations; Lack of consumer awareness UTPs found in almost all the sectors, including: Pharmaceutical sector Education sector Food sector Misleading advertisements most common form of UTP practiced across all