Can A Retailer Charge More Than MRP?

Can A Retailer Charge More Than MRP?

No retailer can charge a price higher than the MRP, and if anyone does so, the customer can take up the matter to the consumer court.

What is MRP?

The Maximum Retail Price, popularly abbreviated as MRP, is the price calculated by the manufacturer and set as the highest price for the product it can be sold. This includes all the reasonable charges for storing and handling the product, taxes and a reasonable profit margin.

As per the Legal Metrology Act 2009, if the retailer sells a product at a price higher than the MRP, shall be liable to pay a fine or face imprisonment. Neither the retailer can print a price tag to stick over the already printed price. As per Sec. 36 of the Act, any person distributing or delivering any pre-packaged commodity that does not conform to the declaration on the package shall be punished with a fine up to twenty five thousand Rupees for the first instance, but if he repeats even after conviction, he will have to pay fine of fifty thousand Rupees in the second instance, and if he still repeats after that, he may get imprisonment for a year and the fine imposed can be up to Rs. 1 lakh.

Can a retailer charge over MRP?

Some retailers in cinema halls and restaurants are allowed to sell a product at a price higher than the MRP, without facing any legal consequences. In a case in December 2017, the Supreme Court passed an order to this effect allowing such with the reason that the restaurants, and movie theatres do not simply sell the products for making product, but they also provide a suitable environment for that, such as an ambience at a restaurant to enjoy the products, the movie halls, provides equipment to enable you to enjoy your meal while watching a movie, and those require maintenance.

This judgement of the Supreme Court was opposed by the Consumer Affairs Minister, who pointed out the risk of tax evasion and the cons of double MRP. A number of restaurants and movie halls are booked for selling products at a higher price than the MRP.

What is the remedy if the retailer charges a price higher than MRP?

A consumer has all the right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers. It also includes the right to fair settlement of the genuine grievances of the consumer. Consumers must make a complaint about their genuine grievances.

In case, the retailer has charged you more than the MRP, keep the receipt or the bill, and lodge a complaint following these ways:

● Helpline number: You can dial the helpline number 1800-11-4000 or 1800-11-14404, to inform the authority any day between 9:30 AM to 5:30 PM except the National Holidays.

● Send an SMS: You can also register the complaint by sending an SMS to 81300 09809.

● Register Complaint Online: An e-option for filing the complaint has been lodged under the provision of the New Consumer Protection Act, 2019. The electronic option is made much easier and you can file your complaint in one of the following forums depending on the value of the claim.

Selling at a price more than MRP is a crime as it exploits the consumer and also contributes to the tax evasion. As a responsible citizen, it is our duty to inform the authority regarding the ill-practice.