Consumer Protection Act, 2018

Chapter-4

Prohibited Acts

16. Not to Engage in Unfair Trade or Business Practices: (1) No person shall engage in or cause to engage in unfair trade or business practices.

(2) If any person does any of the following acts for the purpose of subsection (1), it shall be deemed to have engaged in an unfair trade or business practice:

(a) Selling or providing goods or services by concealing, hiding, or deceiving the actual quality, quantity, price, weight/measure, design, or composition etc.,

(b) Making false or misleading advertisements or selling goods by making misleading advertisements,

(c) Doing any of the following acts orally, in writing, or visually in respect of goods or services:

(1) Selling inferior goods by displaying them as having a specific or quality standard, quality, quantity, grade, composition, design,

(2) Selling re-manufactured or old goods by showing or deceiving them as new,

(3) Disseminating false and misleading advertisements or notices when selling goods or services even in situations where no declared benefits exist,

(4) Claiming, guaranteeing, or selling any goods based on the consumption or use of such goods without factual basis.

(d) Determining prices in a manner that burdens the consumer on a basis different from the actual cost of any goods or services, or determining prices by including the cost of any competition, lottery, opportunity, etc., or selling at such price,

(e) Determining prices by including the cost of donations, rewards, or other free goods in the price of any goods or services, or selling such goods or services at such price,

(f) Producing, mixing, supplying, transporting, storing, or selling any goods or services in a manner that falls below or exceeds the prescribed quality or standard, or causes loss or damage to the consumer from consuming such goods or services,

(g) Creating artificial shortages of any goods, hoarding, or selling,

(h) Selling goods by including in the cost price of other goods the price of goods destroyed from defective products or the price of goods contracted in the course of commercial transactions,

(i) Producing or importing counterfeit goods to displace any goods, or selling such goods,

(j) Refusing to issue a bill or invoice for goods or services sold, or not issuing a bill or invoice, or demanding additional money when issuing a bill or invoice,

(k) Using pesticides or any chemicals in a manner that causes harm, loss, or damage to the consumer when consuming any goods, or selling goods used in such a manner,

(l) Selling consumable goods whose consumption period has expired or goods unfit for consumption by affixing a new label on them,

(m) Importing, producing, or selling substandard goods that are unfit for consumption,

(n) A business service provider providing services without mentioning the price, quality, place of service delivery, and time of service,

(o) Selling by collusion between producers, importers, transporters, warehousers, or sellers or such persons and other persons, associations, or organizations in a manner contrary to subsection (1) of Section 17,

(p) Selling or providing any goods or services by creating a level or chain higher than the prescribed trade level,

(q) Selling any goods or services without meeting the prescribed structure, standard, or criteria, if any.