In today’s fast-paced market, businesses compete fiercely to sell their products and services. While most follow ethical practices, many companies use unfair trade practices to cheat consumers. These unethical tactics include false advertising, fake discounts, defective products, hidden charges, and misleading contracts.
But did you know that you have strong legal rights to fight against such unfair trade practices? ✅ The Consumer Protection Act, 2019 allows you to file complaints, demand refunds, and even seek compensation if you are cheated by a business.
This blog will explain what unfair trade practices are, how to identify them, and how you can report them to get justice. 🚀
What Are Unfair Trade Practices? 🤔
Unfair trade practices are business tactics that cheat, mislead, or exploit consumers. These can include:
✔️ False advertising – Misleading claims about a product’s quality, benefits, or effectiveness.
✔️ Hidden charges – Extra fees that companies do not disclose properly.
✔️ Fake discounts – Increasing prices before a sale and then offering “huge discounts.”
✔️ Defective products – Selling poor-quality items without proper warranty or return policy.
✔️ Unfair contract terms – Forcing customers into one-sided agreements.
📌 Example:
An e-commerce website claims “80% discount on mobile phones,” but when you check, the original price was inflated before the sale. This is an unfair trade practice.
💡 Consumers have the right to report such unfair practices and take legal action!
Common Types of Unfair Trade Practices 🚨
1. False Advertising & Misleading Claims 📢
✔️ “100% herbal cream for instant fairness!”
✔️ “Lose 10 kg in 10 days – No exercise needed!”
✔️ “This toothpaste is recommended by all dentists!”
📌 Example:
A company advertised a hair oil that guarantees hair regrowth in 10 days, but no scientific proof existed. The company was fined ₹10 lakh for misleading consumers.
💡 What to Do? If an ad seems too good to be true, it probably is! Always verify claims before buying.
2. Fake Discounts & Deceptive Pricing 💰
✔️ E-commerce websites increase prices before a sale and then show a big discount.
✔️ Stores sell “Buy 1 Get 1 Free” but double the price of the first item.
📌 Example:
A customer bought a TV on “Mega Sale” for ₹40,000, thinking he got a 50% discount. Later, he found out the actual market price was ₹38,000 before the sale.
💡 What to Do? Compare prices on different websites before purchasing.
3. Defective Products & Fake Warranties 🔧
✔️ Selling faulty mobile phones, electronics, or appliances without proper warranty.
✔️ Refusing to replace a defective product even when under warranty.
📌 Example:
A person bought a brand-new refrigerator, but it stopped working in 2 days. The company refused to replace or repair it, citing “store policy.” He filed a consumer complaint and won a full refund + ₹50,000 compensation.
💡 What to Do? Always check warranty terms before buying any electronic product.
4. Hidden Charges & Unfair Loan Terms 💳
✔️ Banks and finance companies add extra fees on credit cards or loans without informing customers.
✔️ Loan repayment contracts have unfair conditions, leading to extra penalties.
📌 Example:
A bank offered a zero-interest EMI scheme but charged processing fees and hidden service charges, making it more expensive than a regular EMI.
💡 What to Do? Read the fine print before signing any financial agreement.
5. Fake Reviews & Online Scams 🌐
✔️ Businesses post fake positive reviews about their products to mislead buyers.
✔️ Scam websites sell fake branded products at cheap prices.
📌 Example:
A man ordered Nike shoes at 60% discount from an unknown website. The website disappeared after payment, and he never received the product.
💡 What to Do? Always buy from trusted websites and check reviews on multiple platforms.
How to Report Unfair Trade Practices in India? 🚀
If you have been cheated by a business, take the following steps to report the unfair trade practice and seek justice.
Step 1: Contact the Company’s Customer Care 📞
✔️ Call or email the company and demand a solution.
✔️ Keep all proof (bills, emails, chat screenshots, and receipts).
📌 Example:
If an online store delivers a fake product, email customer support immediately and ask for a refund.
💡 Most issues are resolved at this stage. If not, proceed to Step 2.
Step 2: File a Complaint with the National Consumer Helpline (NCH) 📞
✔️ Call: 1800-11-4000 (Toll-Free)
✔️ Online Complaint: consumerhelpline.gov.in
✔️ WhatsApp Complaint: +91-8800001915
📌 Example:
A customer paid ₹5,000 for a furniture order, but the company refused delivery. He filed a complaint on NCH and got a full refund.
💡 If your issue is still unresolved, escalate it further.
Step 3: File a Complaint with the Advertising Standards Council of India (ASCI) 📢
✔️ If an advertisement is false or misleading, file a complaint with ASCI.
✔️ Online Complaint: www.ascionline.org
📌 Example:
A fairness cream claimed 100% results in 7 days, but it was false. ASCI banned the ad and fined the company ₹5 lakh.
Step 4: File a Case in Consumer Court ⚖️
✔️ If the company refuses to cooperate, file a case in Consumer Court.
✔️ File your case online at: www.edaakhil.nic.in
✔️ No lawyer is needed for small cases.
📌 Example:
A man bought a car with a defective engine, but the dealer refused to replace it. The Consumer Court ordered the company to refund ₹8 lakh and pay ₹1 lakh compensation.
💡 Consumer Court cases usually take 3-6 months for resolution.
Your Legal Rights Against Unfair Trade Practices ⚖️
India has strong consumer protection laws to fight against fraud:
🔹 Consumer Protection Act, 2019 – Protects consumers from misleading ads and unfair trade.
🔹 Legal Metrology Act, 2009 – Prevents incorrect pricing and misleading packaging.
🔹 Food Safety & Standards Act, 2006 – Regulates food safety and quality.
🔹 E-Commerce Rules, 2020 – Protects online shoppers from fraud.
📌 Example:
A food delivery app charged hidden service fees, violating the Consumer Protection Act. The government ordered them to refund ₹10 crore to customers.
💡 Know your rights and take legal action when needed!
Final Thoughts: Take Action Against Unfair Trade! 💪
If you have been a victim of unfair trade practices, don’t stay silent – fight for your rights! 🚀
💡 Key Takeaways:
✔️ Identify unfair trade practices like false advertising, hidden charges, and fake discounts.
✔️ File complaints with NCH (1800-11-4000) and ASCI (www.ascionline.org).
✔️ Approach Consumer Court if needed and demand compensation.
✔️ Stay informed and spread awareness about consumer rights!
📢 Legal awareness is crucial! Share this blog to help others fight unfair trade in India 🇮🇳!
💬 Have you faced an unfair trade practice? Share your experience in the comments!