Page 188 - DMGT401Business Environment

Unit 8: Legal Environment

If the MRTP Commission reports that the trade practice is against public interest, the government Notes
can order the following:
1. Regulating production, supply, storage or control of goods or services and fixing terms of
sale, sales price and supply.
2. Prohibiting the undertaking from resorting to such trade practice, that reduces competition.
3. Fixing quality standards for goods.

4. Declaring some type of agreements as unlawful.
5. Asking any party to cancel the whole or part of any agreement.
6. Regulate profits that may be derived from production, storage, supply, distribution or
control or goods or provision or services.
7. Regulate quality of goods or services.

Initiation of Inquiry by the Commission

The Commission can enquire into any restrictive, unfair or monopolistic trade practice (a) upon
receiving a complaint from any consumer or a consumers' association, (b) on reference made by
Central or state government, (c) on an application made by DGIR, (d) on its own.

8.1.4 Governing Body

MRTP Commission

The Central government provides its powers under Section 5 of the MRTP Act. As per the MRTP
Act Commission, it is to consist of a chairman and not less than two and not more than eight
other members. The chairman should be a person who has been or is qualified to be a judge of
the High Court or the Supreme Court.

One time tenure of the office of a member is fixed for 5 years subject to renewal. However, no
member can hold office for more than 10 years or beyond reaching age of 65 years (section 6).

Director General

The Central government has also appointed a Director General of Investigation and Registration.
The main function of the Director General is to make preliminary investigation before an
inquiry by the MRTP Commission and to maintain a register of agreements required to be
registered under the Act.
Powers of the Commission

The MRTP commission has the following powers:
1. Power of a civil court under the Code of Civil Procedures, 1908, with respect to:
(a) Summoning and enforcing the attendance of any witness and examining him on
oath.
(b) Discovery and production of any document or other material object producible as
evidence.

(c) Reception of evidence on affidavits.

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