Restrictive trade practice requires proof of competitive harm, not merely conduct in restraint of trade.

Collecting a refundable security deposit without interest is not, by itself, a restrictive trade practice under the Monopolies and Restrictive Trade Practices Act; the practice must be shown on the facts to have, or likely have, the effect of preventing, distorting or restricting competition in the relevant market. Where the record contains no material showing an actual or probable competitive effect, a cease and desist order cannot be sustained. The absence of evidence of the relevant economic facts and circumstances makes a finding of restrictive trade practice unsustainable.

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Issues: Whether collection of refundable security deposit without payment of interest by a school constituted a restrictive trade practice under the Monopolies and Restrictive Trade Practices Act, and whether, in the absence of material showing an actual or probable effect on competition, the Commission could sustain a cease and desist order.

Analysis: The decision turned on the settled principle that a trade practice is not restrictive merely because it is in restraint of trade; it must be shown, on the facts of the particular trade, to have or likely have the effect of preventing, distorting, or restricting competition. The record contained no material to show that the practice of collecting refundable security without interest had any such competitive effect. The Commission's conclusion rested on an insufficient factual basis, and the absence of evidence showing the relevant economic facts and circumstances made the finding of restrictive trade practice unsustainable.

Conclusion: The practice was not proved to be a restrictive trade practice, and the cease and desist order could not be sustained.

Ratio Decidendi: A practice can be treated as a restrictive trade practice only if the material on record shows that it has, or may have, the effect of preventing, distorting, or restricting competition in the relevant market.

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