Don’t pay more than the MRP

If, as a consumer, you are keen on getting value for money, you should be informed about the concept of Maximum Retail Price (MRP). The MRP on packaged products is governed by the Standards of Weights and Measures (Packaged Commodity) Rules, 1977. According to this rule and its subsequent amendments, retailers, wholesalers and others should not sell any packaged product at a price higher than the MRP printed on the pack. However, the situation on the ground is far from this. There are many product outlets which charge higher than the MRP and also advance ready reasons for such pricing.

The easiest way to learn about violations would be to visit a nearby bus stand or cinema and find out the price of a packaged product. It is usually much higher than the MRP.

A few shops price their cool drinks higher than MRP and the usual reasons given for this are (1) I have to cool the product before any customer buys it and thereby I incur an additional electricity cost for the same; (2) A few other shops openly state that they have been asked by the company to charge this rate.

The experience is often the same when you visit a hill station. No adherence to MRP. Here the reason quoted is extra transportation cost for bringing the product from the mainland.

With the advent of air-conditioned coaches and even sleeper bus services, inter-city travel among cities has increased manifold. It is here that what can be termed literally as ‘highway robbery’ takes place when the buses stop en route for refreshments. These food outlets located at remote areas along the highway fleece the captive bus passengers by selling invariably at prices far higher than the MRP.

Hotels charge rates for products that are at high variance to the MRP. Here the reasoning is that they incur costs for the service provided, the ambience and the air-conditioning. Moreover, the Federation of Hotel and Restaurant Associations of India has been able to state its cases solidly before the courts and win it too. It won the case in the Delhi High Court and also at the National Consumer Disputes Redressal Commission.

At the other end of the spectrum are manufacturers who ‘maximise’ the printed MRP, with the result that the retailer sells it at a surprisingly low cost. What better examples can you get than with automobile spare parts and fire crackers. The reasoning here is that the products need to be transported over the length and breadth of the country which adds to the cost.

Another factor which helps add to the confusion is the different rates of taxes levied by different state governments. So according to this reasoning, the printed MRP caters to the customers in Guwahati, Kashmir, Kanyakumari, or Bhuj, but no to those in any city you happen to live in.

All the above examples lead us to a few questions. What is the sanctity of the MRP? What are the measures that need to be taken to make all the product sellers follow the MRP strictly? The best solution would be for you, the consumer, to question every retailer who ignores the MRP to charge you fancy prices for products.

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