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Vigneswaran (Lawyer)     05 October 2009

Higher price than MRP

I would like to know how people can sell a product higher than the Maximum Retail Price (MRP) since recently i went to a mall where the MRP of the water bottle was Rs.20 but i was charged Rs 25 plus 2% VAT on it.



Learning

 14 Replies

kranthi kiran (Works In Judicial Department)     05 October 2009

Lodge a Complaint against the seller with the Vigilence Dept, Civil Supplies Dept and also with the producer fo the water bottle.

V.T.Venkataram (Advocate and Consumer Activist)     06 October 2009

Please file a complaint with MRTP or Consumer Forum .

Vigneswaran (Lawyer)     06 October 2009

Before filing my complaint i would like to know, is there any exceptions granted to the elite classes.eg. the 5 star restaurants , Airlines, Multiplexes etc.Since i have been informed that the SC has ruled that  these classes can sell a product above MRP and im not sure about the Citations of the particular case but please help.

Jamshed Bey (Lawyer & Legal Consultant +91 9810136627)     07 October 2009

I believe that there has been a judgment which has permitted higher prices for vendors stationed in PVRs and big malls etc. I will have to check that but such a sitution does exist.

Vigneswaran (Lawyer)     07 October 2009

 Thanks alot @Jamshed Bey it would br more helpful if u can funish me with the information regarding the judgement.


(Guest)

I am for sure there is a judgement by the Supreme court of NRI( NON RESIDENT INDIANS) sorry India where it has exempted hoteliers from selling a product at par or below MRP printed on the packaged products. Almost all hotels of (dis)repute with stars flying high over their heads, the Airlines , the airports and even Mamta dIDI'S RAILWAYS sell goods at higher than the MRPs in almost all places. 

Secondly manufacturers as per the MRTP act or provisions are obliged to print cost of manufacturing on the packaged product as well. Neither the Jago Grahak Jago nor this Forum is highlighting this important aspect may be to safe guard the interest of their respective clients.

I am on the search and certainly be able to locate the judgement for the private India by YOURLORDSHEEPS.


(Guest)

Dear All

This is a cut and paste job. Pl go through it meanwhile i look for the SC of NRI sorry India judgement against constitution of India.

 

 

 Legal Service India.com

 
Data Safety

Maximum Retail Price - Consumer

click here for LIVE help-desk


Chhoti Shahi

Introduction:-
In today’s scenario it is usually found that the prices of consumer goods traded in the markets are settled arbitrarily by the manufacturers. Even you can realize that in a market where within one city, different products have different rates of taxes, it becomes very difficult for consumers to check whether retailers are actually charging the correct amount of local taxes on the products they sell. Therefore the confusion in respect of price of the goods is natural for the consumer and the manufacturers gain huge profit as the actual manufacturing cost is very low. The manufacturers arbitrarily fix the price and the consumers are compelled to purchase goods at higher costs.

Under the Weights and Measures (Packaged Commodities) Rules, all packed goods should carry certain essential information on the contents of the package, such as its weight or volume, the name and address of the manufacturer, the date of manufacture, and in case of food packages, the best before date and, of course, the maximum retail price (MRP).

Under the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2006, certain guidelines has been provided so that the consumer can not charged over to the maximum price printed on the goods by the manufacturer. These guidelines are as follows:

1. consumer goods mean all goods and items brought in the market for sale and are meant for the use and consumption of the consumers;
2.
cost of production means cost incurred directly or indirectly by the manufacturer in the production of goods;
3.
printing means printing of the cost of production and retail price at a visible place on the product in Hindi and English and the local language of the place it is sold; and
4.
maximum retail price means such price at which the product shall be sold in retail and such price shall include all taxes levied on the product.

The legislation has made it mandatory for the manufacturers to printing of cost of production and maximum retail price on packaging of consumer goods, so that the consumer could not get overcharged by the agents/dealer.

It is essential for the consumers to know the difference between the maximum retail price and actual price of the goods. The maximum retail price is inclusive of all taxes and a retailer can sell at a price below the MRP. In fact consumers should always look for retailers who sell below the MRP because the MRP is the maximum retail price allowed for that commodity and not the actual price and a retailer can well reduce his margin built into the MRP. While on the other hand, the actual price could be about 10-15 per cent lower than the MRP. Sometimes the printed MRP is so high that the difference between the selling price and the MRP can be as much as 30-50 per cent. It is an offence to sell at a price higher than the marked price. Whereas the actual price could be about 10-15 per cent lower than the MRP.

Some times it has been found that the consumers go to market and take products from the shops without even looking the MRP written on the packaging and carton of the products. In that situation dealer told the price of the products to the buyer and also sates that I would give you on discount rate. After buying the same when buyer comes back to home than only he/she finds that the price of the goods mentioned on the packaging and carton is already less than the price on which he/she has bought after discount. Under the Standards of Weights and Measures (Packaged Commodities) Rules, manufacturers have to specify on all pre-packed goods meant for retail sale, the MRP inclusive of all taxes. This is a requirement meant to ensure that consumers are not misled by the agents/dealer and shopkeepers about the price of packed goods. Overcharging is an offence for which the trader can be prosecuted and prosecution can be launched against the manufacturer in case the packaged commodities bears the price which is altered. In the above-mentioned case, the dealer takes advantage of the fact that the consumer could not see the packaging and quoted a higher MRP.

Sometimes it also happens that the manufacturer increases the price of a products and sells old stocks/products on new price rates and if buyers ask the reason they simply answer that the Price has increased because of the changes in duties or increase in the cost of production and the new packages carry the revised MRP. Obviously, this new price does not apply to the stock already with the retailer. And this is where retailers try to make a quick buck by trying to sell the old stock at the new revised rate, even though doing so is an unfair trade practice.

On the similar issue a complainant filed a complaint case before the apex consumer court. The issue involved in the complaint was that the complainant went to purchase a product namely tarpaulin (Waterproofed Canvas), the price mentioned on the ‘duckback baby sheet’ purchased by him was Rs 92, but the seller asked him to pay for Rs 112 along with the statement that the price of the sheet was actually Rs 124 but it had an old label indicating the MRP as Rs 92. So after discussion, the price was settled between them (the seller and the buyer) at Rs 112.

In the above said matter the State Commission held that if the old label on the product indicated Rs 92 as the MRP, then charging more than what has mentioned on the packaging is illegal and the activity of the seller constitutes an unfair trade practice. And as a punishment for indulging in such a practice, the commission used the relatively new provision in the Consumer Protection Act to impose exemplary damage and asked the seller to pay the consumer punitive damages of Rs 10,000.

The apex consumer court, before which the seller filed an appeal, said it fully agreed with the view of the state commission. While doing so, it pointed out that if the price had been increased from Rs 92 to Rs 124 due to increased cost of production and transportation, which would apply only to the new stock. The price of the old stock cannot change. In the circumstances, the old stock cannot be sold at the new price. Therefore, the state commission was right in imposing exemplary compensation. (M/S Cargo Tarpaulin Industries Vs Sri Mallikarjun B.Kori, revision petition number 2132 of 2007, decided on July 5, 2007). It is an offence to sell at a price higher than the marked price. It is for this reason that manufacturers provide a more than adequate cushion for dealer margins while marking the MRP. Whereas it is specifically mentioned Under the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2006 that No person shall sell or cause to be sold any consumer goods without the cost of production and maximum retail price of the product printed on such product after the expiry of six months from the date of coming into force of this Act.

Forum For Redressal
The aggrieved complainant may file a complaint before the proper Forum and can get redressal. Several important Acts and laws have been announced by the legislation. These Acts are followings: Monopolies and Restrictive Trade Practices Act (hereafter "
MRTP Act") and the Essential Commodities Acts, Environment Protection Act and the most significant Consumer Protection Act. The Consumer Protection Act, 1986 (hereafter "the Act") is a remarkable piece of legislation for its focus and clear objective, the minimal technical and legalistic procedures, providing access to redressal systems and the composition of courts with a majority of non-legal background members.

The Consumer Protection Act establishes a hierarchy of courts, with at least one District Forum at the district level, a State Commission at the State capitals and the National Commission at New Delhi. The pecuniary jurisdiction of the District Forum is up to Rs. one lakh and that of the State Commission is above Rs. one lakh and below Rs. 10 lakhs. All claims involving more than Rs. 10 lakhs are filed directly before the National Commission. Appeals from the District Forum are to be filed before the State Commission and from there to the National Commission, within thirty days of knowledge of the order.
Under the Act, a consumer or any registered voluntary consumer association or any Central or State Government can make a complaint. A "
consumer" is a person who buys any goods or hires any service for consideration, paid or promised or partly paid or under deferred payment. This includes any user of such goods or services when such use is made with the approval of the person who paid or partly paid etc. However, goods obtained for commercial purposes or for resale are not covered under the Act.

Complaints can be made against
(a) unfair trade practices by which complainants suffer loss or damage;
(b) goods that suffer from one or more defects; or
(c) deficient service.

The procedure adopted by the Forum or Commission on receipt of a complaint is to refer a copy of the complaint to the Opposite Party directing them to file their version within thirty days or such extended period not exceeding fifteen days at a time. The Forum or Commission has the powers vested in a civil court and these include the power to summon and examine witnesses, requisition reports of analysis or tests from appropriate laboratories and to receive evidence by way of affidavits.
Based on its findings, the Forum or Commission can grant a direction to the Opposite Party to remove the defect, replace the goods free of defect, or refund the charges paid for the goods or service and to pay compensation for the loss or injury suffered by the complainant. Such directions are to be treated as if it was a decree of a court, and non-compliance can amount to imprisonment

Other Laws That Impact Consumers
Essential Commodities Act: Any complaint of hoarding or unfair trade practice against the thirty-four commodities listed as essential commodities under this Act can be preferred to the special courts established under the Act.

Standards of Weights and Measures Act and Rules: This Act prescribes standards for the weights and measures used in trade. These standards ought to be certified by the Bureau of Indian Standards (BIS) and contain the "ISI" mark. This also prescribes rules for packaged commodities. The rules explain the details that a package should contain - like the maximum retail price (MRP), weight of the commodity, date of manufacture and expiry.

MRTP Act: This Act establishes a Central Commission to initiate suo motu action against restrictive and unfair trade practices and also to hear and pass orders on complaints. The aim of the Act is to stop any trade practice that may have the effect of preventing, distorting or restricting competition or causes loss or injury to consumers.

Prevention of Food Adulter-ation Act: This Act contains stringent provisions against adulterators of food articles. The Act also prescribes a set of officers to check the quality and quantity of food in public establishments.

Drugs and Cosmetics Act: This Act prescribes officers to enforce its various provisions and also prescribes stringent action against manufacturers of drugs and cosmetics for violations under this Act.

Conclusion: All such legislations and rules would become effective if consumers know their rights and duties and perform accordingly.

Consumers Right
1.
Right to Safety: To be protected against the sale of goods and services which are spurious/hazardous to life.
2.
Right to information: To know the quality, quantity, weight and the price of goods/services being paid for, so that you are not cheated by unfair trade practices.
3.
Right to choose: To be assured wherever possible, access to a variety of goods and services at a competitive price.
4.
Right to be heard: To be heard and be assured that your interest will receive due consideration at appropriate fora.
5.
Right to Seek Redressal: To seek legal redressal against unfair or restrictive trade practices or exploitation.
6.
Right to Consumer Education: To have access to consumer education.

Consumers Responsibilities
1) Obtain full information regarding quality and price before making any purchases.
2) Be careful, about false and /or misleading advertisement
3) Purchase goods having quality marks like ISI/Agmark etc. as and where available, for safety and quality.
4) Obtain proper receipt/cash memo for purchases made and guarantee/warranty card duly stamped and signed by the seller, wherever applicable.
5) Approach Consumer Forum for redressal of consumer grievances against sale of defective goods or deficient services or adoption of unfair restrictive trade practices.

Precautions For Consumers:
1. Purchase only when you need and do not purchase in a hurry.
2. Do not buy blindly. Demand full information before you buy.
3. Beware of false/misleading advertisements.
4. Do not compromise on the quality of goods and services and its quality. Purchase only quality products.
5. Do not forget to obtain proper receipt/cash memo. Always obtain the guarantee/warranty card duly stamped and signed by the shopkeeper, wherever necessary. These can be helpful in consumer courts

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(Guest)

Now read this 

https://www.akosha.com/consumer-complaints/cases/restaurants-and-hotels-can-charge-above-mrp-packed-food-products-bottled-m

High has given a verdict in favour of hoteliers which is used as a right by the airlines , airports , restaurants , railways etc etc . Only Aam Admi is to follow law of the land.


(Guest)

Another cut and paste job to know more on the issue . I myself fighting against the issue and made many complaints in writing . Nothing happens in India as YOURLORDSHEEPS are on their side.

Can we find another Anna Hazare to  pass a stricter MRTP Act which is not bypassed by the YOURLORDSHEEPS for a consideration of course.

Or else we can convince Mr Moilly before he is eased from the UPA II to file a curative petition against such rulings ?

But why the grand old congress antagonises the big fat benias( hoteliers, airlines magnets etc etc?

Haridas

 

 

 

usiness » Court order on MRP to hit consumers Court order on MRP to hit consumers November 11, 2003 11:32 IST Share this Ask Users Write a Comment A bottle of mineral water for Rs 20; a cold drink and a pack of cigarette for Rs 50: all is fair as far as the hotel and restaurant industry goes, thanks to a recent Delhi [ Images ] high court order which has given a go-ahead to them to charge more than the maximum retail price. The high court has stayed the order of the centre on MRP and allowed hotels to charge more than the MRP. Major hotel and restaurant chains had appealed to the court earlier this year, complaining about the Centre's move to enforce a ban on charging more than the MRP. "We have been able to obtain a stay order from Delhi high court on our writ petition on selling packaged products like bottled water, soft drinks, cigarette and other packages in hotel and prices at prices not higher than the MRP," says Shyam Suri, secretary general, Federation of Restaurant and Hotels Association of India [ Images ]. The FHRAI had filed a writ petition in the Delhi high court in which it had said that the Rule 23(2) of the Weights and Measures Rules, 1997 does not apply to hotels and restaurants. The rule says that retailers, wholesalers and others will not sell any packaged product at a price higher than MRP. "The association had also applied for a stay, restraining the two respondents, secretary, department of consumer affairs and controller of weights and measures, Delhi government from applying the MRP rule to hotels and restaurants. The court has also passed the stay order against the respondents in favour of the petitioner, the FHRAI," says Suri. "It is essential to charge more than the MRP as we have to take into account the service and other infrastructural charges. There is no other way but to charge the consumers for the service we are giving them," says Sunil Anand, a hotelier. Moreover, there is lot of difference in having a soft drink at a roadside stall and a five-star hotel: the service, the air-conditioning, the ambience, all has to be accounted for in the charges, says Anand. "A hotel or a restaurant obviously cannot sell packaged products at prices similar to retail establishments because of the service which comes along and also the infrastructure which goes into preserving these eatables. Customers have never complained and they are willing to pay for the services we provide," he says. The hotel and restaurant industry started facing problems on the MRP issue after the centre decided to enforce a ban on charging more than the MRP for the packaged food. Since selling packaged food is a big money-spinner, those in the industry say, the hoteliers had started demanding that they be allowed to levy additional charges over and above the MRP, in the name of "premium services and facilities." The Weights and Measures Rule defined that no retail dealer or other person could sell packaged products at a price more than the MRP, and according to government interpretation, hotels and restaurants come under the category of 'other person.' The hotels were before the last year's order exempted from charging according to MRP and could levy additional charges for services. But once the Centre's order came, the weights and measures officials in some states started inspecting and even fining hotels, which prompted the industry to move court, says an official of FHRAI. Meanwhile, consumers say after the court order, most restaurants have revised their rate list and are charging much more than what they were a year back. Explains Anand, "There is going to be some difference in rates of five-star, two-star and small restaurants. Everyone is going to charge according to the service they are providing." So you could still hope to get a soft drink for Rs 15 at your locality restaurant, but the five-star joint is sure to charge you Rs 50 for it. Arvinder Kaur in New Delhi © Copyright 2011 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent. Share this Ask Users Write a Comment

Neeraj C. Hanumante (Scientific Officer C)     21 March 2012

Hi Haridas,

 

I have read the above discussion.

I still have a query, why should a customer pay higher than MRP if the customer is just taking away the packaged food/beverages ... What I mean is that "since I am not utilizing the ambience of the restaurant" why should I pay more for that ... ? this scenario is mainly concerned with restaurants located on highways where people just stop to grab a packaged snack and a beverage or two ...

 

Most important issue I want to know about is " why the hotels and restaurants shouldn't bargain with the manujfacturers to maintain their profit margins" ??

 

Regards,

Neeraj

(:->)


(Guest)

Lawlessness is the law of the land.And law is an Ass to the power infinity further compounded by contradictory but always in favour of the money bags , judgements of the Supreme Court of NRI sorry India. As a lay man I agree with you cent percent but will it be enough ?

Vigneswaran (Lawyer)     23 March 2012

An even sorry state has occured nowadays on High ways. All the restaurants and roadside shops on High ways charge More than the MRP, making aam admi a prey to the greedy. 


(Guest)

Let's not gun for the petty traders. They can be excused. To buttress my view let me cite an example. We recently visited Nagarjun Sagar Dam appx 140 km from my residence at Secunderabad. On my way I needed to keep my children happy with soft drinks and potato chips , their favourite diet. The rates started varying and reached beyond MRP at the Nagarjuna Dam site. When I asked the small time shopkeeper why he is charging above MRP he gave me prompt reply that to get that staff at that site cost him above MRP. As I drove down on my private car I could easily understood his point of view.Law on MRP is itself lopsided.

We should instead demend that the cost of manufacturing as is mandaed by the same law is inprinted alongside the MRP. It will have a cascading effect from manufacturers to traders to wholesellers to retailers. It will be always be advantageous to the consumers at any place.

Neeraj C. Hanumante (Scientific Officer C)     25 March 2012

Hi Haridas,

Thanks for yourr inputs regarding remote places. May be those can be spared, but even in well connected places e.g. holy places, overcharging is observed.

Can someone tell me, which goernment official should be contacted in case a seller denies to provide a bill/cash receipt ??
 This is in same context of the overchargeded packaged food stuff for which most of the shopkeepers deny to provide a cash receipt.


Thanks n regards,

Neeraj

(:->)


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