Page 1 of 10

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 11

October 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 206

A Study of Fraudulent Practices Adopted By Producers and

Intermediaters and Remedial Practices

Mrs Harsh

Lecturer in Commerce

Shri L.N. Hindu college Rohtak

Email : harshmanchanda1993@gmail.com

ABSTRACT:

The philosophy of marketing is based on consumer. The consumer is not only the heart of

marketing but also the controller of marketing functions. In reality consumer may be „King‟ of

corporate activities, but King is misguided by his Kingdom This paper discuss the different type

of fraudulent practices such as exorbitant prices of products and services, deceptive selling

practices, false and misleading advertisements, defective quality higher prices, sale of hazardous

products to ignorant consumers, suppression of material information etc. Adopted by

producer/seller and intermediaters and also explain the remedial actions such as to remove the

defect pointed out, replace the goods with new goods of similar description, return to the

complainant the price etc. The main objective of the study is to analyse the role of consumer

protection act 1986 in protecting consumers from fraudulent practices In this paper data were

collection is collected through various sources like internet, journals, magazines, text books of

various authors and Newspapers. At least some suggestion and recommendation given that might

further improve the consumer protection regime in the country.

KEYWORDS:- Consumer protection, fraudulent practices, remedial action, education,

consumer right, information of fraudulent practices in India

INTRODUCTION

Over the years an increasing number of

defective and unsafe products are being

marketed to make a quick buck. A product

may become unsafe because it was

manufactured without due to regard for the

user‟s safety. Sometimes even after taking

due to care the product might be unsafe for

reasons other than the manufacturer‟s

Page 2 of 10

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 11

October 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 207

carelessness, such as when it has a defective

component and at the other extreme, a

product may be inherently dangerous.

Given the number of widespread consumer

exploitation, it is no surprise that consumer

protection has gained immense importance

worldwide. In the age of globalization,

consumer protection guidelines and

legislation are necessary at the international

and national level to ensure the safety of

consumers.

Fraud can be a pressing challenge for the

consumer products industry, with the

potential to impact finances, erode customer

trust and impact brand value. Consumer

market companies tend to have several third- party touch-points, such as vendors/

suppliers, transporters, third-party

manufacturers or subcontractors, packers,

stockiest, distributors or other third party

service providers, that can significantly

increases the risk of collusive frauds that are

difficult to detect.

The total number of consumer complaints

filed/disposed since inception under

Consumer protection act 1986 and the

number of complaints pending as on

December, 2015 are:

Name of Agency Cases filed since

inception

Cases disposed

of since

inception

Cases Pending % Disposal

National

Commission

98952 88893 10059 89.83%

State

Commissions

697964 601216 96748 86.14%

District Forums 3659486 3373529 285957 92.19%

Total 4456402 4063638 392764 91.19%

The Statement of Cases filed/disposed off/pending in the National Commission, State Commissions and District

Forums are at Annexure-I.

Objectives:-

Analyze treatment of UTPs under Indian law

to highlight institutional challenges faced

and suggest an efficient approach to address

the identified challenges.

Page 3 of 10

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 11

October 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 208

Growing Incidences of Unfair Trade

Practices in India

The term "Unfair Trade Practice" does not

have a universal standard definition.

However, the term Unfair Trade Practice

broadly refers to any fraudulent, deceptive

or dishonest trade practice; or business

misrepresentation of the products or services

that are being sold; which is prohibited by

law. In India Section 2(1)(r) of the

Consumer Protection Act, 1986 defines UTP

to mean 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, and includes, inter

alia, the following:

1. Falsely represents that the goods

are of a particular standard,

quality, quantity, grade,

composition, style or model;

2. Falsely represents that the

services are of a particular

standard, quality or grade;

3. Falsely represents any re-built,

second-hand, renovated,

reconditioned or old goods as

new goods;

4. Represents that the goods or

services have performance,

characteristics, accessories, uses

or benefits which such goods or

services do not have;

5. Represents that the seller or the

supplier has a sponsorship or

approval or affiliation which

such seller or supplier does not

have;

6. Makes a false or misleading

representation concerning the

need for, or the usefulness of,

any goods or services;

7. Gives to the public any warranty

or guarantee of the performance,

efficacy or length of life of a

product or of any goods that is

not based on an adequate or

proper test.

8. Gives false or misleading facts

disparaging the goods, services

or trade of another person.

Legal Protection to Consumer In India

The government of India has been

vigilant against the wicked tendencies of

traders damaging and dubbing the interests

of common consumers. The following

legislations give sufficient light on the

efforts of the government to save the

consumers from malpractices in different

trades:-