Maximum Retail Price (MRP)
- Did you face any situation where shopkeeper charged you more than MRP in the name of refrigeration cost, transport cost or sometime even without any reason?
- Is it permissible to charge more than MRP in Hotels or Restaurants?
- Where should one go to lodge complaint if someone charges more than MRP?
These are some of the common situations and questions which everyone must have encountered at one point or the other. Often people don’t ask questions to avoid unnecessary argument and just pay whatever the retailer demands. This gives further encouragement to such retailers. But we would like to emphasize here that it is not about one or two Rupees. It is about right and wrong. It is about your Rights as a citizen and as a consumer. So yIgnore?
Maximum retail price (MRP) means price at which the product shall be sold in retail and which include all taxes levied on the product. The Standards of Weights and Measures Act, 1976, (the Act) mandates that the price be printed on the package whereas the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 (the Rules) go impermissibly further by stipulating that price charged cannot exceed the printed price. It is an offence to sell a product at a price higher than MRP.
Difference between the Actual price of goods and the MRP
MRP of the product is inclusive of all taxes and the profit margins of wholesalers and retailers. This includes the local taxes which may vary according to place. Thus at places where local taxes is low, the difference between the selling price and the MRP allows for huge margin and retailer may sell the product for price below the MRP. There are no standard rules governing fixing up of MRP of the product unless it is a ration commodity. Manufacturer can decide the price and MRP has to be printed on the product. No wholesale dealer or retailer shall obliterate, smudge or alter the retail sale price indicated by the manufacturer or the packer or the importer. So even one or two rupee extra charged by retailers citing various excuses like refrigeration cost and transport costs are just ways to fleece the consumers.
Exemption
Exemption from MRP is granted to establishments which are not exactly in retail and are providing services as well. It is permissible to charge extra in hotels, restaurants and aeroplanes because what they are offering is a service. The ambiance and the cooling level at which the drink is offered become part of that service and justifies the prerogative to charge what they want. Supreme Court order (State of Himachal Pradesh v/s Associated Hotels of India, AIR 1972 SC 1131), clarified that MRP is applicable only to retail sales (goods sold in shops).
On the other hand, home delivery service cannot be interpreted on the same lines. In a case filed by Ankit Jain, who was charged Rs.35 for a 500ml Coke bottle (MRP Rs.15 at that time) that he had bought with burgers from Nirula’s in New Delhi, the apex consumer court held that home delivery service cannot be construed as a sale in restaurant where added services are offered. Merely mentioning the higher price clearly in menu wouldn’t give them right to charge extra for home deliveries as it will be treated as retail sale of packaged goods. Also, charging higher than mentioned in the menu is also prohibited and is an offence.
Redressal Mechanism
It is the duty of the respective State government agencies to enforce MRP on retail sellers and is not a matter of concern of the manufacturer/wholesaler. In fact, if you look at the legal metrology websites of various state governments, you will notice that some states like Andhra Pradesh, Kerala and Maharashtra have toll-free helplines and also online complaint facilities. Others like Delhi provides the office address where complaints can be lodged here. Any retailer charging more than MRP is liable to a fine upto Rs. 5000 or a prison term of five years with a fine.
In case a consumer wants compensation, a consumer complaint can be filed in the Consumer Court if excess price (more than what is fixed i.e. MRP) is charged for any goods or services. Unlike the State metrology department, consumer court is empowered to give compensation to the consumers.
The consumer should insist on a valid documentary evidence (cash memo/invoice) relating to purchase of goods or availing of any services and preserve it carefully. Such proof of purchase is required for filing a complaint. In case of durable goods the manufactures generally provide the warranty/guarantee card along with the product. It is the duty of consumers to obtain these documents and ensure that these are duly signed, stamped and dated.
Interesting Case
An interesting case of Mr. Varun Bhalla (complaint number: 383014) against Seven Seas Super Mart Pvt. Ltd. filed in the consumer court. Consumer went to Seven Seas Super Mart Pvt. Ltd., Moga, Punjab as the store had advertised that they charge less than MRP on packaged products. Along with other items, he purchased DOVE Soap of 42 gms. In the cash memo he noticed that the weight of the soap cake is mentioned as 50 gram for Rs. 20/-, and after discount, he was charged Rs. 19/-. He was surprised to see that on the soap packaging the MRP mentioned was Rs. 18/- & weight as 42 gram. By manipulation in cash receipt software, the store was actually charging more than MRP.
The case highlights not just the manipulation by a big retail store which provide cash memo and are rarely a suspect of charging more than MRP but also the case of misleading consumers by a misleading advertisement which is also an offence under the rules given. Apart from the increased awareness of rights the consumer can use certain precautions to avoid being fleeced by retailers. One should always insist on cash memo/receipt of purchase. Do not buy blindly and cross check your purchase and the price and, lastly, beware of false/misleading advertisements.
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