Site navigation

A trader publicises a discounted price for a product but deliberately leaves out that the price is available only to new customers. Under the Consumer Protection Act, 2019, how is the trader's…

Question and options

A trader publicises a discounted price for a product but deliberately leaves out that the price is available only to new customers. Under the Consumer Protection Act, 2019, how is the trader's conduct classified?

  1. A deficiency in service

  2. A restrictive trade practice

  3. A misleading advertisement

  4. An unfair contract

Answer and explanation

Correct answer: C - A misleading advertisement

Section 2(28)(iv) of the Consumer Protection Act, 2019 includes in 'misleading advertisement' an advertisement that deliberately conceals important information, as hiding the new-customer condition does. A restrictive trade practice under section 2(41) manipulates price or supply, such as tie-in conditions, a deficiency under section 2(11) is a shortfall in a service actually provided, and an unfair contract under section 2(46) is a contract term that significantly changes the consumer's rights.

Practice for these exams

Related exam syllabi

More solved explanations in Definitions - consumer, deficiency, unfair trade practice