Briefly explain the regulatory measures of the Drugs (Control) Act.
The Drugs (Control) Act, 1950: The Act was provided to control the sale, supply and distribution of drugs. It provides certain provisions to control the prices of drugs in India. The government fixes a maximum price of the drugs and no seller is permitted to sell goods beyond that fixed prices.
Companies are prohibited to undertake advertisement that gives false impression or take face claim for the drugs and mislead the consumers.
The schedule for diseases specified under the Act are: appendicitis, atherosclerosis, blindness, blood poisoning, cancer, cataract, deafness, diabetes, brain diseases or disorder, uterus diseases, disorder of menstrual flow, disorders of nervous system, dropsy, epilepsy, female disease, fever, Fits, Forms and structure of the female breast, gall bladder stones, kidney stones, bladder stones, gangrene, glaucoma, heart diseases, high or low blood pressure, hysteria, infantile paralysis, insanity, leprosy, lock jaw, lupus, nervous debility, obesity, paralysis, plague, pleurisy, pneumonia, rheumatism, ruptures, sexual impotence, small pox, stature of person, trachoma, TB, tumors, typhoid fever, ulcers of GI tract, venereal diseases including, AIDS etc.
Describe the provisions of the Essential Commodities Act in so far as they relate to regulation of price.
Regulations of the prices relating to the provisions of the Essential Commodities Act, 1955. As per this act government fixes a specific price of the commodities covered under the essential commodities and sellers cannot charge prices higher than the fixed price. This act stops the seller from charging unreasonable prices from the consumers. It was provided to overcome the problem of black marketing and hoarding. Businessmen earlier use to create artificial shortage of goods and raise the prices to earn more profits. Moreover, India faces the problem of shortage of essential commodities and spiralling prices. So to control such practices, two important provisions under this Act are
(1) Fixing the Prices of Essential Commodities.
(2) Regulation of Selling Prices of Food items.
1. Fixing the Prices of Essential Commodities Seller can charge prices of the products as determined by
Agreed Price: Price set by government and the seller in respect to the controller price.
Controlled Price: No agreement regarding the price.
Market Price: Price prevailing in the market.
2. Regulation of Selling Prices of Food Items The central government has the authority to regulate the prices of the food items. It can control the rise in prices whenever it finds necessary in accordance with the provisions of 3(3A) of the Act.
As the resale price maintenance stops competition amongst the suppliers. This is against the interest of consumers. So according to the government regulations, The MRTP Act prohibits the manufacturers from fixing resale price maintenance. As per this act, no manufacturer or supplier can directly or indirectly fix the minimum reselling price. And no supplier can hold back the supply of product from the manufacturer, if he insist on minimum resale price. It is punishable offence to disobey the regulations of this Act. The offender is charged with a fine up to Rs. 5000 or imprisonment for period of three months or more.
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