Restrictive practices are ways in which people involved in an industry, trade, or profession protect their own interests. 1. Practices which affect the ability of firms to compete freely in markets for their products and inputs.First, there is the law on restrictive trade practices, dealing with cartels or agreements between firms limiting competition. Examples of 'restrictive practices' in a sentence. Restrictive practices. For example, a United States person under contract to provide general management services in connection with a construction project in a. Encourage participation of historically underutilized businesses in the procurement process. 8. Foster fair, ethical and legal trade practices. A restrictive trade practice is generally one which has the effect of preventing, distorting or restricting competition. Examples of 'restrictive practices' in a sentence.