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Meaning / Definition of

Fair Trade Act

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1. Former piece of state legislation that sought to protect manufactures from unreasonable price cuts by allowing them to determine their own minimum retail prices. The act was later eliminated in 1975 by Congress. 2. Legislation enacted in 1986 that protects consumers from misleading or abusive practices by producers. The legislation covers a wide range of actions. Some of the major provisions cover misleading information and conduct, falsified information, and pyramid schemes.

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