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Maximum Retail Price Laws & Rules in India

Author - Associate Nupur Mehrotra

Maximum Retail Price Laws & Rules in India

So the first question arises: what is MRP price ?

MRP price stands for maximum retail price as per the mrp law India.Maximum retail price is the highest price labeled on the product which can be charged by the seller of that product. In India all the products have the MRP price stated on them which enables the customer to know the highest price that can be charged from them. It is compulsory for all the sellers to mark the MRP price which must be as per mrp label rules in india. What is MRP price? The concept of MRP was introduced in India in 1990 after the amendment of Standards of Weights and Measures Act, 1997. Before the introduction of the MRP rules in India amendment, the retailer was allowed to either mark the local price on the product or MRP India should be according to the MRP Law in India. This made the retailer charge more than the expected and real price from the consumers. After looking into the increased corruption at the price the amendment was introduced to ensure that the consumers are further not cheated. We must get an answer to our question: what is mrp price?

In this article we are going to Discuss about MRP law in India(or mrp label rules in India and Who decides MRP in India also some MRP Label Rules in India. And the MRP mentioned on a product must be as per MRP Act in India.

The Maximum retail price is now governed by the Legal Metrology Rules (Pre Packed Commodities) PCR, 2011. These rules states-

1. ‘All packed commodities shall be affixed with a label that is legible and prominent, and such label shall contain declaration including the Maximum retail price’

2. Also, no exceptions are given for the retailers who tend to sell only a single brand of any commodity.

3. After the amendments made in the Pre Packaged Commodities rules,2011 the goods that are shown by the seller on the electronic networks used for that transaction related to the e-commerce  will have to compulsorily mention the name and address of the manufacturer, packer and importer, name of the commodity, net content, maximum retail price, consumer care numbers, etc.

4. The medical devices which are listed under the drugs like a valve, syringes, etc should compulsorily state the MRP and also provide the declaration that had been made compulsory under the PCR.

5. Also, it is prohibited to state two MRP on the same product. This has been brought to ensure that the consumers do not get confused in paying the price at places where the items are expected to be charged higher like airports, a movie hall.

6. It has been made compulsory for the manufactures involved in packaging and labeling to have bigger font size for labeling and mentioning the details so that the consumers can easily read the context and also ‘best before’ date and the name of the country in which it was manufactured.

Under the Consumer Goods (mandatory printing of cost of Production and Maximum Retail Price) Act, 2006, consumers cannot be charged more than the MRP mentioned on the packing of the products.

After the concept of GST has been introduced the retailers have started taking advantage of the situation and are charging more than the MRP price stating that the price mentioned on the product is exclusive of the tax. Therefore, to save the consumers from being cheated MRP label rules in India after the implementation was introduced. 

The MRP label rules in India(or MRP Act in India) under the GST Act are stated below-

1. An advertisement has to be compulsorily given in a minimum of two newspapers if the price of the commodity has increased after the GST has been imposed, stating the new price of the product.

2. The advertisement rule was applicable from 1st July to 30TH SEPTEMBER 2017 and only on the goods store till 1st July with the supplier.

3. The products which had got the price decreased after the implementation of GST had no compulsion or need of getting published in the newspaper.

4. It became mandatory for the seller to put the new tag with the old price tag for the goods that were stocked till 30th of September and the only new price tag for the goods manufactured after the date.

5. Also, if the seller of the product demands a higher price than the stated MRP in the name of GST, the consumers are free to deny giving the higher price and directly lodge a complaint against the seller in the anti-profiteering commissions that have been set up in India.

In the case of M/S Cargo Tarpaulin Industries Vs Sri Mallikarjun B.kori the state commission had posed exemplary compensation. This was fined because the price was charged more than the MRP stating that the new stock had increased in price. The price for any product can be only charged on MRP and not more than that a sper the MRP Act in India.

The MRP label rules in India and MRP laws in India has helped people in many ways. No shopkeeper can charge more than the MRP. With the introduction of the 2011 rules amendment, the dual pricing system has been abolished to save the consumers from being cheated by the shopkeepers. The consumers have become aware of their rights and can approach the consumer redressal court to lodge their grievance if they have been cheated. With MRP rules after the implementation of GST the sellers cannot charge more than the MRP in the name of GST.

It is very important to understand MRP law in India and its rules and also that all the rules and law would become effective only if the consumers are well aware of their rights and duties and act according to it. That nothing is to be against the MRP Act in India. Hence the MRP Law in India is to be followed by every product manufacturer.

‘As consumers, we have so much power to change the world by just being careful in what we buy’,rest you can go through the MRP Law in India so that you can’t get forge.

Keywords - what is mrp price,mrp label rules in india, mrp act in india, mrp law in india