Under the Consumer Protection Act, 2019, a trade practice which, for the purpose of promoting the sale, use or supply of any goods or service, falsely represents its quality, standard, quantity, composition, style or model is called:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Unfair trade practice
Option (1) Restrictive trade practice — Incorrect. A restrictive trade practice manipulates price or the flow of supplies, so that the consumer pays an unjustified cost.
Option (2) Unfair trade practice — Correct. This is the meaning of an unfair trade practice. The trader makes a false claim about the goods to sell more. For example, a soap maker falsely claims that its soap has sandal oil.
Option (3) Unscrupulous exploitation — Incorrect. This phrase means dishonest ways of taking advantage of consumers. Under the Right to seek redressal, a consumer can get relief against it. It is not the term defined in this way.
Option (4) Overcharging of price — Incorrect. Overcharging means charging more than the fixed price. It is a ground for a complaint and has nothing to do with false claims about quality or model.
An unfair trade practice misleads the buyer about the goods or service. A restrictive trade practice works through price or supply and puts an unjustified cost on the buyer.
NCERT (2026-27 Edition): “Terms & Definitions 1. Complaint: Any allegation in writing made by the complainant for obtaining relief w.r.t restrictive trade practice, defect in goods or deficiency in services provided, overcharging of price or offer of goods or service injurious to life and safety. “Terms & Definitions … 5. Restrictive trade practice: A trade practice which manipulates price or affect the flow of supplies in the market relating to goods and services in such a manner that an unjustified cost is imposed on the consumer.” “5. Right to seek redressal: The consumer has a right to get relief against unfair trade practice of restrictive trade practices or unscrupulous exploitation in case the product or a service falls short of his expectations. The Consumer Protection Act 2019 provides for redressal to the consumers including replacement of the product, removal of defect in the product, compensation paid for any loss or injury suffered by the consumer, etc.” |