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    Question

    Under Section 2(47) of the Consumer Protection Act,

    2019, which of the following would NOT qualify as an unfair trade practice? 
    A Falsely representing that goods are of a particular grade, quality, or composition Correct Answer Incorrect Answer
    B Representing rebuilt or second-hand goods as new without disclosure Correct Answer Incorrect Answer
    C Offering goods or services at a price lower than competitors as part of legitimate promotional strategy Correct Answer Incorrect Answer
    D Making false claims about sponsorship, approval, or affiliation of goods or services Correct Answer Incorrect Answer
    E Misrepresenting the need for or usefulness of goods or services Correct Answer Incorrect Answer

    Solution

    Section 2(47) defines unfair trade practices as deceptive, fraudulent, or misleading conduct that harms consumer interests. However, aggressive but legitimate price competition—offering goods at lower prices than competitors through genuine cost reduction or promotional strategy—is not inherently unfair. What constitutes unfair practice includes: false representation, bait advertising (advertising at attractive price with no intent to sell), misleading warranties, false claims, and concealment of material information. The key distinction is between unfair deception (which includes bait-and-switch tactics) and legitimate competitive pricing. The CCPA's Guidelines (2022) clarify that legitimate commercial pricing strategies are not unfair trade practices.

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