Read the following statements and choose the correct option.
Assertion (A): A firm that advertises its shampoo as made from herbal ingredients, when it contains none, is engaged in an unfair trade practice.
Reason (R): An unfair trade practice manipulates the flow of supplies in the market so that an unjustified cost is imposed on the consumer.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) is true but (R) is false.
Assertion (A): A firm that advertises its shampoo as made from herbal ingredients, when it contains none, is engaged in an unfair trade practice. — True. The firm falsely represents the composition of its shampoo to promote its sale. This is an unfair trade practice.
Reason (R): An unfair trade practice manipulates the flow of supplies in the market so that an unjustified cost is imposed on the consumer. — False. Manipulating price or the flow of supplies so that an unjustified cost falls on the consumer is a restrictive trade practice. An unfair trade practice falsely represents the quality, standard, quantity, composition, style or model of goods or service.
NCERT (2026-27 Edition): “Terms & Definitions … 3. Spurious goods: Goods that are falsely claimed to be genuine. |