A Retailer cannot charge any product amount above the printed MRP. It is the law that a storekeeper cannot sell above the MRP fixed by the manufacturer. However, a person can sell the product at a lesser or discounted price than the MRP.
But there are certain exceptions to this concept, where it is not entirely illegal to sell any product above MRP.
Table of Contents
What is MRP?
MRP is the price calculated by the manufacturer and set as the highest price at which the product can be sold. The MRP – inclusive of all the factors in the cost of production, transportation, taxes, and keeping the margin. It is also compulsory to have MRP on all the products
Legal Metrology Act, 2009
Under section 36 of the Legal Metrology Act, any person distributing or delivering any pre-packaged commodity that does not conform to declarations on the package shall be punished with fines up to Rs. 25,000 for the first offense, and for the second offense the fine will increase up to Rs. 50,000 and for the following offenses, the fine may go up to Rs. 1,00,000 with imprisonment/custody for 1 year or both.
This Act is important as it regulates the weighment and measurement methods for ensuring public guarantee.
This act is applicable all over India. The Act came into effect on 1st April 2011 with the president’s approval on 13th January 2010. It covers provisions regarding standards of the Weights and Measures Act 1976 and the standard of Weight and Measures (Enforcement) Act 1985.
The Ministry of Consumer Affairs are cover this ACT. Every manufacturer has to get a license from the comptroller of the Legal Metrology Department.
The comptroller
The comptroller is the authority who gives a grant of registration to packer/manufacturer commodities. All the necessary information is given on the product as prescribed by the Government like manufacturer information and the products information etc. even as per the Package Commodity Rule 2007, checked by him. it is illegal to sell any product above MRP but these rules are not applicable on good weight above 25 kg or 25 liters.
Any retailer who is selling the product above the MRP is liable to pay a fine or detention or both. No seller can put any of the new stickers of MRP upon the printed MRP.
It is legal if Cinema houses and Hotels charge over MRP?
The petition filed by the Federation of Hotels and Restaurants Associations of India (FHRAI), on 12th December 2017, the Supreme Court of India on hearing the petition, ruled that the hotels and restaurants can sell the products above the MRP.
REASON
The Court said that the restaurant and the hotels are not making a sale like any retailer, they are providing extra services for their customers like the ambiance and cutlery, etc. the court has directed that the Legal Metrology Act, would not be applicable to them and they would not be accused of selling products at a higher price than the MRP.
Government unwelcomed the judgment of the Supreme Court as they think that this judgment will cover the way for tax evasion and loss in revenue generated by the government.
2015, Central Government, filed an appeal to the Supreme Court to prosecute the hotels and the restaurants for overcharging.
Consumer Affairs Minister said that no manufacturer can sell the product at two different prices. Double MRP will be a crime.
Multiplex, Cinema Theatres have been warned many a time and it is illegal for them to sell products above MRP.
Airport Stores
The Government has prohibited the Companies from selling products at a higher price than the MRP even at the Airport. The department has worked on attractive consumer protection. No manufacturer can sell products at a double price unless allowed by law. This rule though won’t be applicable to restaurants and hotels but rest everywhere in India it is applicable.
Hospitals and chemist
Hospitals and chemists also came under the realm of this law. Earlier there were no price tags affixed upon the various medical products like the syringe, stent valves, orthopedic implants, and tools for operation. The customer has the right to know the product price, they going to purchase. Consumers can now complain about the default in the medical devices if appears as well on the redressal forum.
In India, under the Legal Metrology Act, it is illegal to sell products without MRP.
Products without MRP are charged a higher price
In 2018 a PIL was filed in the Bombay High Court pleading that the food products in the cinema houses should be sold at regular prices. The profit made over the cinema ticket price is less than what is made from the food and beverages. they adopt the strategy to decoy the customers to buy it by way of an unusually attractive smell that would tempt the people and induce craving.
Redressal
One can file the complaint by calling the toll-free number or sending an SMS or by way of email to the Legal Metrology Department. The toll-free number is 1800-11-4000 and is available every day between 9:30 am to 5:30 pm (except on holidays). Each state has a different number provided for the redressal purpose. One can go to the website and get the phone number or the mailing address.
Then we have the courts system for the speedy disposal of the cases :
District Consumer Dispute Redressal Forum,
State Consumer Dispute Redressal Forum and
National Consumer Dispute Redressal Forum.
Conclusion
The problem is of unawareness of People in India toward their rights. people don’t have time to look around, and even if they do, they cannot find a fair price shop, as all the vendors around agree to terms that nobody will charge less than that.
There question is not about 10 or 20 rupees charged from you above MRP, the question is regarding the ethical business. people will understand it’s not about money, it’s more about ethics.
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