Legal Aspects of Marketing in India

Introduction Marketing Decisions within the legal framework

Why This Subject?

General Principles
Marketing an age old exchange process Shifting of powers from sellers to buyers, thus becomes more complex Need to understand the buyers Plus there is a technological advancement
No time place barrier, can buy anywhere, anytime

World market

Global village

Wider choices to customers across the world

Role of government to make exchange process simpler POLICIES AND LEGISLATION

Exercise control
Need to evolve business legislation 4 Ps within the Marketing laws

Introduction
Different countries follow different types of law
Common law Civil law Religious law

In India civil law system is followed which is a legacy from British rule
Enforced at central, state and local level
Local laws enforced through municipal corporation, district authorities

Types & Levels of Laws

India laws are categorized into
Business and corporate Criminal Tax Public utilities National heritage & importance Procedural & administration Banking & insurance Environment Family & inheritance National security Consumer Labour Property Constitution

Laws & Marketing

Why is there a need for BUSINESS LAWS?
Protect consumers Protect business Protect society

Marketing Process
What is marketing? success of any product depends on marketing Understanding consumer needs and wants Taking the right product, right consumer, right place and right time
AN EXCHANGE PROCESS IT IS A TRANSACTION INVOLVES BUYERS AND SELLERS

Transaction- A Legal Relationship

Money flow Communication Enquiry SELLER Offerings Order BUYER

Product flow Proposal and acceptance Consideration Capacity of parties for contract Free Consent Documentation An agreement should not be void

CONTRACT ACT, 1872

Marketing Mix & Legal Obligations

Product
Planning needs to be Done in the framework Of legislation

Price Marketing Mix Elements Promotion

Place

Marketing Mix & Legal Obligations

Product design, models, features, volume, packaging, brand, quality

Price list prices, discounts, allowances, commissions, payment terms Marketing Mix Elements Promotion public relations, advertising, sales promotions, direct marketing Place channel, geographical, coverage, storage, assortment, inventory, transportation

Mtkg Strategies & Legal Framework

Consumer protection Promoting healthy competition Environmental protection
IGNORANCE OF LAW IS NOT AN EXCUSE FOR ANY MARKETING MANAGER

Case Studies
Business legislation cases Consumer protection
Ghutka and pan masalas First came impurities in bottled mineral water. Then pesticides in soft drinks. Worms in chocolates.

Social cost
Pollution emmission from motor vehicles

Protecting Businesses
Registration of names [rediff, Yahoo India ]

Indian Law
Indian law is the oldest legal systems in the world Source of Indian law is the Indian Constitution which in turn gives due recognition to statutes, case law and customary law consistent with its obligations Legislatures of Parliament, State Legislatures and Union Territories enact the laws Besides this there is a vast body of laws knows as subordinate legislation in the forms of rules, regulations, laws and by laws

Indian Marketing Laws

Consumer Protection Act Monopolies and Restrictive Trade Practices Act Competition Act Essential Commodity Act Sales of Goods Act Hire- Purchase Act Indian Contract Act Negotiable Instruments Act Bureau of Indian standards Act Standards of weights and measures Act Prevention of food adulteration Act DPCO Patent Act Copyright Act Trademark Act Design Act Geographical Indication of goods Act Drugs & Cosmetics Act

Indian Marketing Laws

SEBI Advertisement guidelines Drugs and Magic remedies act Cable TV networks Act Pre natal diagnostic techniques Act Cigarrette and other Tobacco products Act Warehousing corporation Act Motor Vehcicles Act Carriage by Air Act Carriage of goods by Sea Act Multi modal transportation of goods Act Central Excise Act Central sales tax Act Jute Packagng Materials Act

Why Consumer Protection Act?

Consumer has a right to
SAFETY INFORMATION CHOOSE BEHEARD REDRESSAL CONSUMER EDUCATION It s a common mans civil court

Consumer Protection Act, 1986

Exclusively in the interest of the consumers Seeks to promote rights of the consumers Applicable to all states except J & K Speedy, simple and inexpensive redressal of consumer grievances The provisions are compensatory in nature

Monopolies & Restrictive Trade Practices Act [MRTPC]

This law protects consumers and small industries and traders against exploitation arising out of growth of monopolies and consequent misuse of market conditions by resorting to restrictive trade practices by large business corporations and industry houses with financial muscle and market dominance. This act protects the consumers directly

Monopolies & Restrictive Trade Practices Act [MRTPC]

This act also defines the unfair trade practices This act also defines restrictive trade practices which are resulting into concentration of power, dominant market position, exploitation of small businesses and indirectly affecting the consumer

What are these Unfair Trade Practices?...

False representation of:
Quality, composition, style/model of goods/ services False affiliation, misleading statements Warranties, guarantees without adequate tests Sale of substandard, hazardous goods

MRTP cont d
Restriction on:
Sale of goods to certain persons Purchase & sale at stipulated prices Allowing concession/ benefits by way of discounts Resale prices Quantity, output and area of disposal of goods Resale prices with a result of elimination of competition

Competition Act
This repeals the MRTPC act which has become obsolete in view of development in the Indian and global markets This endeavors the shift of focus from the restricting monopolies to promoting fair competition Objective is to promote fair competition, protect consumers, firms from each other and interest of the society

CA, Some Highlights

Registration of restrictive trade practices Prohibition of anti competitive practices
Price fixing Output restriction Bid rigging Market restriction

Penalties upto 10% of average turnover Emphasizes on competition advocacy

Essential Commodities Act

This act empowers the government to issue orders for regulation, production, storage, transportation, distribution of the essential commodity in the interest of the general public. This ensures availability of essential commodities at fair prices, curbing the hoarding, black marketing.

Essential Commodities Act

Every offence is punishable under the act is cognizable and non bailable. The offences against the individuals and organizations are punishable by way of fines and or imprisonment upto seven years

Highlights cont d
Production

Fees for issue of licenses and permits

Distribution

Helps in regulation of These

Information

Sales

Transaction

Highlights
Essential commodities..
Cattle fodder, coal, components, parts of automobiles Cotton and woolen textile Drugs ass defined in D&C act Food and edible oil Iron and steel Newspapers Petroleum/ products Raw cotton and jute

Sales of Goods Act, 1930

Transaction of goods from seller to buyer Act of transfer of property in goods Change of title of ownership It s a Contract which may be absolute or conditional

Ownership of goods to be immediately transferred from seller to buyer Delivery or immediate payment not necessary, can be done at future date

What Happens Here

An offer from seller, acceptance by buyer

Stipulation of delivery terms, Immediate or future date

Payment terms- cash or credit

Act covers rights and duties of seller and buyer CEVEAT EMPTOR- LET BUYER BEWARE

Hire- Purchase Act, 1972

Balanced protection hirer and owner

Hirer needs goods Does not have money

Ownership remains with owner till last installment

Goods are offered on HirePurchase

In case of breachTermination of contract Seizure of goods

Payment in periodic installments

Contract Act, 1972

Conditions on communication, acceptance, revocation of proposals, performance of contract, breach of contract Post agreement of buying if goods are defective, unfit or dangerous, liability to compensate lies with seller BREACH OF CONTRACT

Contracting parties to be competent [not insane and above 18yrs]

Regulates conduct of parties to creation, performance and breach of promises

Negotiable Instruments Act, 1881

Deals with 03 kinds of instruments
Promissory note Bill of exchange Cheque payable either to order or to bearer

High bearing on payment transactions with customer, suppliers and banks by a business firm

Some More..
Bureau of Indian Standard Act, 1986 Standards of Weights & Measures Act, 1976

Sets standards for products, commodities, materials and processes at national and international level Issues certification to products that meet certain quality standards

Provides uniform weights and measures throughout the country Prescribes as per the metric system Safeguards the consumers against unfair practices in packaged goods Penalty is fine/ imprisonment

Prevention of Food Adulteration Act, 1954

Prohibits manufacture, sale and distribution of not only adulterated food but also contaminated food and misbranded foods Adulterated food can cause economic loss and health hazard

DPCO
Statutory price control for bulk drugs and formulations Certain drugs known as scheduled drugs are under price control Drugs not under price control can be freely priced but under some restrictions

Patent Act, 1970

Authorised right for limited period for commercial exploitation It is form of industrial property Granted to new inventions, which are capable of industrial applications Inventions to have novelty and utility Controller of patents grants patents right to the patentee

Copyright Act, 1957

Owner of copyright exclusive rights to multiply copies of his work for commercial exploitation Negative rights to refrain from unfair practices [illegal] Literary, dramatics, musical, computer programming, artistic work, cinematographic film, sound recording and so on..

Trademark Act, 1999

Protection to the user of trademark on his goods to prescribe conditions for acquisition and legal remedies for enforcement of trademarks rights Identified product and its origin Guarantees unchanged quality Advertises the product

Design Act, 2000 Features of shape, configuration, pattern Allows registration of product to protect the visual appearance of manufactured products Can gain a marketing edge Others cant use without an agreement Valid for 10 years

Geographical Indication of Goods Act, 1999

Helps consumers from deception Geographical names have acquired distinctiveness and importance Agricultural goods, manufactured goods, food etc.

Drugs & Cosmetics Act, 1940 Controls mfg, store and selling of medicines and cosmetics Restrains mfg. to make false and misleading claims for the drugs and cosmetics

SEBI Advertisement Guidelines, 2000

Protect investors from unscrupulous companies making offers in public issues for equity shares and debentures Need to make certain disclosures in their offers, its mandatory

Drugs & Magic Remedies Act, 1954 Provides restriction against advertisement that claims certain diseases

Cable Television Networks Act, 1995 Regulation on cable TV network to curb undesirable program and advertisement

Pre Natal Diagnostic Techniques Act, 1994 Specifies roles and responsibility of Advertisers and prevents misuse of media regarding pre natal determination of services

Cigarettes & other Tobacco products Act, 2003 Bans advertisement, prohibits sponsorship of sports And cultural events.

 Self Regulation of Advertisement through ASCI [Advertising Standards Council of India]

To control offensive content in advertisement

Warehousing Corporation Act, 1962

Regulation for the purpose of warehousing

Motor Vehicles Act, 1988

Regulation of motor vehicular traffic Maintenance of state registers for license, registration

Carriage by Air Act, 1972/ Sea Act, 1925

Covers conventions relating to rights and liabilities of carrier, consigner, consignee

Multi Modal Transportation of Goods Act, 1993

 Central Excise Act, 1944

Empowers govt. to collect levied tax called Excise duty imposed on commodities produced and products manufactured as per the act sections These cannot be removed till excise duty is paid

Central Sales Tax Act, 1956

Inter state sales

Jute Packaging Material Act, 1987

Stipulates use of jute

Consumer Rights & Consumer Protection Law

Consumer Movement International Scenario Consumer Rights in India Consumer Protection Law Case Studies

 Rights legally protected interest Interest- things which are to man s advantage Unscrupulous marketers follow unfair trade practices to cheat the consumers Growing Consumerism and host of consumer protection laws to protect the consumers ALERT CONSUMER is the best protected consumer

Consumer Movement
Consumerism is an organised movement of citizens and government to strengthen the rights and power of buyers in relation to the sellers Consumers feel, sellers have more power than buyers Thus to have equal balance of power between buyer and seller, need for consumerism

Guarding the interest against unscrupulous marketers

Govt. involvement in forming policies

Educates consumers to become more alert

Consumerism

The International Scenario

ECOSOC [Economic and social council]
Laid down needs for poilicies and legislation Environmental concern Social and economic development Consumer alert, consume quality goods

Consumer Rights in India

Right to be protected

Value for money

Satisfactio n of basic needs

Value for people

informed

Healthy environme nt

Consum er Rights

choose

education redress

Be heard

Consumer Responsibilities

solidarity

Critical awareness

Environme ntal awareness Social concern

Action

Consumer Rights
Can also be classified as Fundamental rights Constitutional rights Investors rights Medical rights Legal rights

Fundamental Rights
Right to equality Right to freedom Right against exploitation Right to freedom of religion Cultural and educational right

Investors Rights
Protect from investment brokers, other middlemen apart from stock issuing companies Internationally, investors bill of rights passed by various monitoring bodies and consumer protection organizations

Investors Rights 3 tier qualifying process Eligibility norms Pre issue obligations of companies Post issue obligations of companies

Medical Rights Why?

Medical negligence Unqualified practitioners

Medical profession declared as a service under this act

All facts of illness Patient has right to ask question to doctor Right to know doctors qualifications Right to second opinion Right to be told in advance about operation Can make a choice of hospital Right to get case paper on request

Legal Rights Provide free and competent legal Services to the weaker sections of the Society Justice not denied to any citizen

Consumer Protection Act, 1986

Extension and coverage all goods and services, all sectors, provisions are compensatory in nature Meaning of goods under CPA- Persons [consumer of bank, telephone, electricity, traveling by bus/ train..], services[hospital and nursing, housing, construction ] Who is not held a consumer?... Redressal- uniform procedures, speedy grant of copies..

CPA..
Complaint filing procedure
Name, description and address of complainant Name, description, address of opposite party Facts related to the complaint Supporting documents if any Relief that the complainant is seeking

Remedies granted under the act

Simple, speedy and inexpensive redressal to the consumer grievances

Appeals Penalties

Case Studies
Services Medical Negligence

Trade Practices & Competition

Deceptive [unfair] Trade Practice Restrictive & Anti Competitive Trade Practice Counterfeiting Indian Laws Cases

Deceptive [unfair] Trade Practices

Greed of quick money making, unscrupulous marketers adopt variety of deceptive practices to attract gullible customers Deceptive practices fall under 3 categories Deceptive pricing
False list price [overpriced] on which discounts are offered Price fixing done by individuals or group of firms

Deceptive promotion
Overemphasizing or overstating the quality, features, standards, applications and performance of product

Deceptive packaging
Misleading information about the product therein and not conforming to statutory requirements Information regarding product usage and safety is not revealed

 Certain sales acts and practices are considered deceptive when Claims for sponsorship which it does not have Product/ services claims performance, characteristics, ingredients, accessories which it does not have.. Does not have particular standard, quality, grade.. Product is claimed as new, but is not.. .. A deceptive sales act/ practice with a consumer transaction violates the CPA, whether it occurs before, during or after the transaction.

 Circumstances/ situations which are considered in determining unfair practices Producer, mfg, distributor, supplier took advantage of the consumer if he is unable to understand the language of agreement Price grossly exceeds similar product at similar time which are readily obtainable in similar transaction by like consumers Consumer unable to receive a substantial benefit from the transaction If the transaction is excessively one sided in favor

Some Examples
False advertising and other misrepresentations Product physically not available

False statements of guarantees in advertising Deceptive pricing practices -Pretending that product normally sells for higher price -Misrepresenting the price as compared to competition -Placing fake price stickers -Difference in advertised price and actual price -Using the term special price

Restrictive & Anti Competitive Trade Practices

Any practice that will prevent or reduce competition is considered restrictive Any of these could be restrictive trade practices Price to be demanded, offered, paid Profit to be obtained Location, person with whom business to be done Restrictions on quality, quantity, type of goods..

What Happens if Restrictive Trade Practices are followed?

Monopolistic situation in the market Distort, eliminate or curb competition in the market Restriction to access by customers to competitive products Concentration of economic power in few hands

Counterfeiting
Prevalent in Pharmaceutical and Electronic consumer goods industry Illegal business of drug counterfeiting eats in to the revenues of legitimate business and also jeopardizes the health and wellbeing of patients Reputation of health care providers thus stake Ethical pharma business based on trust
Doctor and pharmacist trust the industry Patient trusts the doctor

Counterfeiting
5-7% of drugs sold around the world are counterfeit Difficult even for medical practitioners to differentiate They appear alike, but misses the active ingredient Any pharmaceutical drug can be counterfeited but the most vulnerable ones are Antibiotics, anti malarial drugs, cough syrups, skin ointments, anti pyretics, analgesics, contraceptives, multivitamins and so on..

 Few reasons that can make the industry alert and active High prices of some categories makes it lucrative Co existing black market for high demand drugs Low cost medicines Products that need little dosage and usage information Products that are easy to copy in color, design, size DRUG COUNTERFETING is a global crime Proper education end users and health care providers will help curb it

INDIAN LAWS
CPA Protect consumer Three tier system at district, state and central level Relief is compensatory in nature MRTP To curb unfair trade activities Prevent concentration of economic power Control monopolies Any undertaking producing 1/4th or more of any type of goods and having assets > 1 cr, required to obtain clearance Commission can direct that practice shall be discontinued Any modification Need to publish Hold investigation on receipt of complaint At Delhi,at central level, thus may cause delay CA Cover prohibition of anti competitive agreements Abuse of dominance Regulation of combinations Establishment of CCI Enquiry to be done within one year An agreement is deemed to hinder competitionDirectly/ indirectly determines purchase or sales Limits/ controls production, supply, tech devlp

CCI factors that are considered as anti competitive

Foreclosure of competition by hindering entry

Driving existing competitors out of market

Creation of barriers to enter market

An enterprise can have its dominant position, which enables it to operate independently Section 4 of the act, prohibits any enterprise from abusing its dominant position Directly/ indirectly imposes unfair conditions, pricing stipulations Limits/ restricts production Denies market access to others

Cases
Non printing of sale price.. Substandard product allegation Misrepresentation in advertisement Supply of product which was never manufactured

Product Sales & Hire-Purchase

Sales of Goods Act, 1930 Hire-Purchase Act, 1972 Contract Act, 1872 Negotiable Instruments Act, 1881 Cases

Sales of Goods Act, 1930

What are goods? Any moveable property other than actionable claims and money Shares, stocks, goodwill, copyright, trademark patent etc, is considered as goods Gas, electricity Goods have to transmissible or transferrable from one hand to other, or capable of delivery Need not necessarily be in tangible/ physical sense

Features Valid Sales Contract

Bilateral transaction [buyer and seller] Subject matter of sale of goods Delivering of specific qlty, qnty Delivery by specific period Price to be mutually agreed to and fixed Payment terms Transfer of title of goods Passing of risk Transport of goods [road, air, sea, rail] Packing of goods Transit insurance Inspection of goods Rejection, damages, return of goods Warranty After sales service Guarantee performance Contract termination Dispute settlement- juirsdiction

Formation of Contract
Sale & Agreement to sell

Sale- an executed contract Agreementexecutory contract

CAVEAT EMPTOR Let the buyer beware

Formalities of contract

Offered at a price Agreement Acceptance Immediate delivery Immediate payment Or installments Writing/ WOM

Condition- essential to main purpose Warranty is collateral to main purpose

Contract condition & Warranty

Goods- existing/ future goods Description, mfgrer, confirming Subject Matter of specifications Contract If the goods perish/ damage post Agreement without knowledge of Seller, the agreement is void

Rules of Delivery
Delivery & Payment Anything to deliver the goods to buyer Delivery of part of goods Mode of delivery Place of delivery Time/ period of delivery Demand of delivery at a reasonable hour Delivery expenses Delivery in phases or installments Delivery at a place other than agreed Short delivery Excess delivery Delivery mixed with other goods

Rights & Duties of Seller and Buyer

SELLER BUYER

DUTIES Delivery of goods as per demand Reasonable time and opportunity to examine goods Compensate buyer for wrong supply Accept rejected material Compensate buyer for breach of contract RIGHTS Receive payment for goods delivered Receive compensation for damages due to buyers negligence Sue buyer for wrongfully receiving goods Sue for damages caused because of buyer

DUTIES Pay to seller for the goods accepted Apply for delivery of goods to seller Compensate the seller for breach of contract Return the rejected material

RIGHTS Receive delivery of goods ordered Get time to inspect Terminate contract if there is a breach Sue seller for non performance Sue for breach of warranty

Rights for Unpaid Seller

Right of retain the possesion Right to stoppage in transit Right to resale Right to withhold supplies or disposal Right to sue the buyer

When can the buyer sue?

Damages for non delivery of goods Specific performance of goods Breach of warranty Repudiation of contract

Contract Act
Proposal and acceptance Consideration Capacity of the parties Free consent Undue influence Fraud Misrepresentation Mistake Legal relationship certainity

Cases
Default in Hire-Purchase installment Acceptance of delayed payment Dishonor of cheque

Marketing Mix & Legal Obligations

Product
Planning needs to be Done in the framework Of legislation

Price Marketing Mix Elements Promotion

Place

Marketing Mix & Legal Obligations

Product design, models, features, volume, packaging, brand, quality

Price list prices, discounts, allowances, commissions, payment terms Marketing Mix Elements Promotion public relations, advertising, sales promotions, direct marketing Place channel, geographical, coverage, storage, assortment, inventory, transportation

Product
Legal Issues in Product Development & IPR Protection Product Development IPR- An Intellectual Capital Global vs. Indian IPR Landscape IPR Indian Legal Framework Cases

 In today's huge competition, need to develop strategies to faster product development And protect their IPR
With IPR either make money with manufacturing, licensing Globalization has necessitated legal strategy to develop newer products and to capture, preserve and protect IPR

 Product Development
Intell Sony

Mega competition

Technology plays a major role

Need to adopt strategy to product differentiation by product development

Product lifecycle is deliberately compressed Old products are killed and replaced with new and innovative products Monies spent on R&D, New products to comply with acceptable quality & design standards stipulated By law

Product Development
Product needs to be compatible with environmental standards, should be harmless for human usage and consumption
Mfg process to avoid pollution of environment Pkg not adding to waste generation Does product & pkg have recycling potential Harmless for human use Approved by appropriate agency and certified for usage

 Government & consumer groups are watchdogs on launch of new products Host of legislation for arresting introduction of harmful products
Banning use of CFC Ghutka

Marketers have added one more step in product devlp process- compatibility of mfg, process, pkg ..to the existing regulations in the country

 NPD is a risky process

For growth, survival Product lifecycles are compressed Advances of technology Safety needs of the potential users needs to be looked at under the growing pressure of consumerism [high application in pharmaceutical and process food products] Safety, health and environmental regulations have increased in the areas of healthcare, medicine, automobile, consumer durables, toys, clothing, food products

 To look in to the setting of standards for products, commodities, materials and process at national and international levels, Bureau of Indian Standards [BSI] came into force
Body corporate and comprises of members representing industries, consumer organisations, scientific & research institutes, professional bodies, technical institutions, central ministries, state govt., MPs Facilitates harmonious development of standards Product certifications Quality system certification Environmental management system certification

 Certification mark scheme operates under ISI [Indian Standards Institution Act, 1986]
Enables to grant license Product or services conforms to the specified requirements

For obtaining certification Product has to undergo testing & inspection Penalties have also been enhanced recently Regular & surprise inspection carried out to ensure quality standards are maintained

IPR- An Intellectual Capital

Differentiation may be achieved through product, experience, technology or way things are performed and exhibited to satisfy consumers This amounts to knowledge , is the key source of competitive strength to organizations Knowledge produced through hardwork, experience and inventions is the intellectual capital of the firm Needs to be captured, preserved, protected for future use [for not being used by rivals] Intellectual capital lead to core competency, which can be leveraged for sustainable advantage

Intellectual Capital includesPATENTS COPYRIGHTS DESIGN TRADEMARKS BUSINESS SECRETS PRODUCT IDEAS BUSINESS PROCESSES Intellectual capital is an intangible wealth that helps the organization, access to markets, preserve exclusive markets, maintain profits

 Hence need to preserve these rights through legal framework, as to protect it from infringement or any misuse by competitors IPR connotes value attached to intellectual contribution for patent, trademark or some innovative work

IPR Framework
IPR

Copyrights

Geographical Indications

Industrial Property

Trademarks

Patents

Designs

 It s a highly specialized area of law designed to encourage creativity and fair competition Patent Can be obtained for a new or improved machine, article of mfg, chemical composition, process, software or business method, e-commerce business model, enabling technology for internet Patent prevents anyone else to take it up unless you are paid for the privilege Grants you right to decide the fate of your invention at the market place

Words, symbols, numbers, slogans, designs, features of pkg, color combi, animations, sounds Identify source of goods Helps to create branding strategies that establish consumer loyalty

Trademark

Applies to expression of an idea, whether published or not

Copyright
Establishes ownership of original words Books, poetry, play, short stories

Example..
New wristwatch invented Patent can protect the invention Shape of wristwatch can be protected by design registration Name under which it is sold is a trademark and can be registered Style/ words that are inscribed on the wristwatch or literature, which explains working of the watch will be protected by copyright

Indian IPR Scenario

Patent laws to make it compatible to TRIPS [trade related aspects of intellectual property and services] India has put in place mailbox facility to allow registration of patents of pharmaceutical and chemical products It has also extended exclusive marketing rights

Basic Concept of IPR Laws

PATENT LAW Centers around concept of novelty and inventions Relates to new products/ processes of mfg. of a product Based on concept of distinctiveness Consists of words, names, device in addition to particular goods to indicate source of mfg/ origin Originality and reproduction of work in any material form. Relates to original literary, dramatic, musical Novelty and originality of design Relates to non functional appearance of the product which appeals solely to eyes Sign used on goods, which have a specific geographical origin

TRADEMARK LAW

COPYRIGHT LAW

DESIGN LAW

GEOGRAPHICAL INDICATION LAW

IPR- Indian Legal Framework

Indian Legal Framework

Copyrights Act

Trademark Act

Patent Act

Design Act

Geographical indications Act

PRODUCT PRICING
Pricing- A key element of Marketing Mix Pricing Decisions- Legal aspects Indian Laws for pricing regulations Cases

 Market driven economy, market forces decide price tag on the product Price tag never reflects the true value of the product to the consumer Consumers always fall prey to unjustified gains on product pricing fronts

 Pricing- a key element in marketing mix Without pricing there is practically no marketing Product and services are purchased as per the price tag Facilitates exchange process to take place with ease and convenience In free market economy, competitive prices are influencers and not the marketers Price fixing is unfair trade practice and restricts competition

 In free market economy, there is not govt. control on fixing the prices, if a consumer feels the prices are deceptive, marketer can be pulled in court

Pricing Decisions: A Legal Aspect

For survival and growth, pricing tools are used to make volume sales, increase market share, reduce inventory, or to click a deal with the customer Former price comparison Price discrimination Quantity discounts Functional discounts Restriction on minimum price Restriction on maximum price Price fixing

 Bid rigging Dumping

Indian Laws for Pricing Regulations

CPA, 1996

DPCO, 1995

Essential Commodity Act, 1955

Prevention of black marketing and supplies of EC Act, 1980

CA, 2002

Prohibition of Anticompetitive Agreement

Sec 3(1) of CA, prohibits enterprises and persons from entering into agreements with respect to production, supply, distribution, storage, acquisition or control of goods or provision of services, which may have an appreciable adverse effect on competition
Directly/ indirectly determines sales/ purchase prices Results in bid rigging Creation of barriers to new entrants Driving existing competition out Foreclosure Accrual of benefits to consumers

Abuse of Dominant Position

Sec 4(1) of CA, 2002, prohibits any enterprise from abusing its dominant position in pricing Directly, indirectly, imposes unfair conditions, or pricing stipulations in the purchase of sale of goods or services