Which of the following statements about a restrictive trade practice under the Consumer Protection Act, 2019 is incorrect?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A restrictive trade practice falsely represents the quality or standard of goods.
Option (1) A restrictive trade practice falsely represents the quality or standard of goods. — False. Falsely representing the quality or standard of goods is an unfair trade practice. A restrictive trade practice works through price and supplies.
Option (2) A restrictive trade practice manipulates the price of goods and services in the market. — True. A restrictive trade practice manipulates price, for example when sellers push up prices together.
Option (3) A restrictive trade practice affects the flow of supplies of goods and services in the market. — True. It may affect the flow of supplies, for example when stocks are held back.
Option (4) A restrictive trade practice imposes an unjustified cost on the consumer. — True. Because of the manipulation, an unjustified cost is imposed on the consumer.
NCERT (2026-27 Edition): “Terms & Definitions … 4. Unfair trade practice: A trade practice for the purpose of promoting sale, use or supply of any goods or service falsely represents its quality, standard, quantity, composition, style or model.” “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.” |