Unfair trade practice
Also called: UTP
A trade practice that, to promote the sale, use or supply of goods or services, adopts an unfair method or an unfair or deceptive practice, including those listed in Section 2(47) of the Consumer Protection Act, 2019.
Explained
Section 2(47) of the Consumer Protection Act, 2019 defines unfair trade practice as 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, including the practices listed in the clause. The list is illustrative, not exhaustive, because of the word including.
Clause (i) covers false or misleading statements, oral, written, visual or by electronic record, about the standard, quality or grade of goods or services, passing off old or reconditioned goods as new, claiming sponsorship or approval that does not exist, unfounded warranties of performance, misleading statements about price and false facts disparaging a rival's goods. The remaining clauses cover bait advertisements of bargain prices, offering gifts or prizes with no intention to provide them and promotional contests other than those prescribed, sale of goods that do not meet safety standards, hoarding or destruction of goods to raise prices, and manufacturing spurious goods. The 2019 Act added three practices: not issuing a bill, cash memo or receipt as prescribed (clause (vii)); refusing to take back defective goods, or withdraw deficient services, and refund the consideration within the period stipulated in the bill, or within thirty days where no period is stipulated (clause (viii)); and disclosing personal information given in confidence by the consumer, unless permitted by law (clause (ix)).
An allegation that an unfair trade practice has been adopted is a complaint under Section 2(6)(i), so a consumer may seek relief before the Consumer Commissions. It differs from a restrictive trade practice under Section 2(41), which concerns manipulation of price or supply that imposes unjustified costs or restrictions, and from an unfair contract under Section 2(46), which concerns one-sided terms in the contract itself.
Examiners frequently set fact problems on clause (viii): where the bill is silent on returns, the thirty-day period applies, and where the bill fixes a shorter period, that period governs.
What the law says
Section 2, Consumer Protection Act
(47) “unfair trade practice” means 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 including any of the following practices, namely:—
(i) making any statement, whether orally or in writing or by visible representation including by means of electronic record, which—
(a) falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or model;
(b) falsely represents that the services are of a particular standard, quality or grade;
(c) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods;
(d) represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have;
Section 2(47) defines unfair trade practice; 2(6) complaint
Example
For example, Priya buys a mixer whose cash memo says nothing about returns. It proves defective on the twentieth day and the shop refuses to take it back. Since no period was stipulated, the thirty-day period applies, and the refusal is an unfair trade practice under Section 2(47)(viii).
For the exam
- Defined in Section 2(47) CPA 2019; the list of practices is inclusive.
- Not issuing a bill or cash memo is an unfair trade practice (clause (vii)).
- Refusal to take back defective goods within the stated period, or 30 days if none stated (clause (viii)).
- Disclosing a consumer's confidential personal information (clause (ix)).
- Distinguish restrictive trade practice (Section 2(41)) and unfair contract (Section 2(46)).
18 questions in the Law Maker question bank use this term. Practise Consumer Protection Act, 2019 questions
Related terms
- ConsumerUnder Section 2(7) of the Consumer Protection Act, 2019, a person who buys goods or hires or avails of services for consideration, including approved users and beneficiaries, but not for resale or commercial purpose.
- Unfair contractA contract between a manufacturer, trader or service provider and a consumer whose terms cause significant change in the consumer's rights, such as excessive deposits or one sided termination. Section 2(46) of the CPA, 2019.
- DeficiencyAny fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance of a service, including negligence and deliberate withholding of relevant information (Section 2(11) CPA 2019).
- DefectUnder Section 2(10) of the Consumer Protection Act, 2019, any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard of goods required by law, contract or the trader's claim.
- Product liabilityThe responsibility of a product manufacturer or product seller to compensate for harm caused to a consumer by a defective product or by deficiency in services relating to it (Section 2(34), CPA 2019).
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.