Bottled Water & Packaged Food Products Won't be Charged More than their MRP: Govt

Bottled Water & Packaged Food Products Won't be Charged More than their MRP: Govt
By Admin 7 years ago

Bottled Water & Packaged Food Products Won't be Charged More than their MRP: Govt

The Centre has issued an advisory to states striking down overcharging of packaged items above their MRPs at airports, malls, multiplexes and restaurants.

In a clear cut directive to all State Governments, Ministry of Consumer Affairs has categorically and bluntly stated that no one can sell any product at a price which is more than the MRP (Maximum Retail Price).

And this includes all packaged products such as water, food items sold inside multiplexes, airports and shopping malls.

Multiplex, Airports Cannot Charge More Than MRP for Bottled Water & Packaged Food Products: Govt

The logic presented by the Ministry is pretty simple, and straightforward: There can’t be two MRPs for the same product, inside the same State. Hence, the government has made it clear that in the cases of two MRPs for a single product, the lowest price will be considered the actual price. 

Business observers and analysts have come out with a theory, according to which, companies can easily find a work-around this MRP rule, and successfully charge additional money for the same product, without breaking any law.

Assume this: 1 litre of water bottle sold at grocery and departmental stores costs Rs 20, which is mentioned as the MRP. Now, if this same bottle is sold inside airports and multiplexes, then they can’t charge more than Rs 20 as per the directive from the Ministry.

However, what if the FMCG companies manufacture and pack the same product in a different form, with a new MRP?

Assuming the same example, a packaged water bottle company can now pack 675 ml in a bottle, and set the MRP as Rs 60. And using some tactics, ensure that only Rs 60 MRP water bottle is available inside airports and multiplexes. Now, the consumer has to pay Rs 60, and no MRP rule has been broken as well.

The ministry has already directed National Consumer Disputes Redressal Commission (NCD- RC) to make sure that all products are sold at MRP at all locations, but if the company supplies different products at different MRPs, then the rule can be worked upon.

As per other reports, Consumer Affairs Ministry has asked all State Govts to investigate the difference in weight of break packers available in different locations.

The official said, “As per our norms, the net weight difference can be 4.5 grams. But there were complaints that bread makers were not complying with the norms. The states are empowered to inspect, verify and take action. We expect the manufacturers to comply with the specified rules and ensure consumers get products of the right weight for which they are paying..”

We appreciate the initiatives taken by Consumer Affairs Ministry to make sure that the consumer rights are protected.