The Monopolies & Restrictive Trade Practices Commission will be renamed Fair Trade Practices Commission under the revamped Monopolies and Restrictive Trade Practices (MRTP) Act being considered by the government.
Under the proposed MRTP Act, there will be a complete bifurcation of jurisdictions of the new act and the Consumer Redressal Act. This would help the commission to concentrate on larger issues rather than take up individual consumer grievances.
The MRTP Commission at present is flooded with individual consumer complaints and over 3000 such cases are pending with the commission. Officials assert that these complainants are only interested in claiming their compensation from companies which have indulged in unfair or restrictive trade practice. Hence, these cases need to be addressed by the Consumer Redressal Act, letting the MRTP Act concentrate on larger issues.
Another clause being considered by the government for inclusion in the revamped Act is the conferring of powers on the commission to impose financial penalties on offenders whose guilt has been proven.
At present, the MRTP Act allows only cease and desist orders against any party whose unfair or restrictive trade practice has been proven.
The government is also considering the withdrawal of writ jurisdiction from the act which allows offenders to contest the commissions decision in high courts.
According to MRTP officials, the parties often seek stay orders from high courts which lengthens the time period for the cases.
The new act may also bring the directorate-general (investigation & registration), a statutory body under the MRTP Act, under direct control of the commission and also withdrawal of the suo motu powers of DGIR under the proposed recast act.
The new act would also seek to raise the status of the members of the commission from additional secretary level to secretary level. Besides, the act is likely to provide for additional members to the commission.
According to officials in the MRTP Commission, the recast of the act is being undertaken to give more teeth to the commission in discharging its duties. The thrust of the new act would be to allow the commission to undertake more issue-related cases and act in its capacity as a quasi-judicial body.
highlights of the new act
MRTP Commission to be renamed to Fair Trade Practices Commission
Bifurcation of jurisdiction between MRTP Act and Consumer Redressal Act to enable the Commission to focus on policy issues rather than individual cases
Mergers and amalgamations to be brought under the Act
Status of Commission members to be raised to secretary level
Commission to have power to impose financial penalties
Withdrawal of writ jurisdiction and all appeals against Commission to be directed to Supreme Court
Monopoly trade to come under the jurisdiction of the Act
