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Maximum retail price mrp

Shivani (Learner) (1881 Points)

14 June 2018

Dear Friends

I want to know on what items it is necessary to print MRP.

Which is the law relating to MRP so that i can read it to better understand it?

Regards

Shivani

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 14 June 2018

The maximum retail price (MRP) that is printed on all packaged commodities that consumers purchase was introduced in 1990 by the Ministry of Civil Supplies, Department of Legal Metrology, by making an amendment to the Standards of Weights and Measures Act (Packaged Commodities’ Rules) (1976).

As re-produced below::

Commodities in packaged form intended to be sold or distributed in the course of Inter-State trade or commerce

39. (1) No person shall--

(a) make, manufacture, pack, sell, or cause to be packed or sold; or

(b) distribute, deliver, or cause to be distributed or delivered; or

any commodity in packaged form to which this Part applies unless such package bears thereon or or a label securely attached thereto a definite, plain and conspicuous declaration, as prescribed, of --

(i) the identity of the commodity in the package;

(ii) the net quantity, in terms of the standard unit of weight or measure, or the commodity in the package;

(iii) where the commodity is packaged or sold by number, the accurate number of the commodity contained in the package;

(iv) the Unit sale price of the package.

(v) the sale price of the package.

Explanation- In this sub-section, the expression 'unit sale price' means the price according to such unit of weight, measure or number as may be prescribed.

(2) Every package to which this Part applies, shall bear thereon the name and address of the manufacturer. If manufacturer is not the packer, then name and address of the packer shall be given.

(3) Where the package of a commodity to which this Part applies or the label thereon bears a representation as to the number of servings, of the commodity continued therein, such package or label shall also bear a statement as to the net quantity (in terms of weight, measure or number) of each such serving.

(4) The statement on a package or label as to the net weight, measure or number of the contents thereof shall not include any expression which tends to quality such weight, measure or number:

Provided that the Central Government may, by rules, specify the commodities, the weight or measure of which is likely to increase or decrease beyond the prescribed tolerance limits by reason of climatic variations; and it shall be lawful for the manufacturer or packer of the commodity so specified to quality the statement as to the net content of such commodity by the use of the words 'when packed'.

Explanation.--The words 'when packed' shall not be used in any case except a case to which the proviso to sub-section (4) applies.

(5) Where the Central Government has reason to believe that there is undue proliferation of weight, measure or number in which any commodity is, or reasonably comparable commodities are, being packed for sale, distribution or delivery and such undue proliferation impairs in the opinion of that Government, the reasonable ability of the consumer to make a comparative assessment of the prices after considering the net quantity or number of such commodity, that Government may direct the manufacturers and also the packers or distributors to sell, distribute or deliver such commodity in such standard quantities or number as may be prescribed.

(6) Whenever the retail price or quantity of a commodity in packaged form to which this Chapter applies, is stated in any advertisement, there shall be included in the advertisement a conspicuous declaration as to the net quantity or number of the commodity contained in the package or the retail sale price thereof respectively.

No person shall sell, distribute or deliver for sale a package containing a commodity which

filled less than the prescribed capacity of such package except where it is proved by such person that the package was so filled with a view to—

(a) giving protection to the contents of such package, or

(b) meeting the requirements of machines used for enclosing the contents of such package.

(8) The Central Government may, by rules, specify such reasonable variations in the net contents of the commodity in a package as may be caused by the method of packing or the ordinary exposure which may be undergone by such commodity after it has been introduced in trade or commerce.

(9) The Central Government may, by rules, specify the classes of commodities or packages in relation to which all or any of the provisions of this section shall not apply or shall apply with such exceptions or modifications as may be specified therein.

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Vinod Babu (24191 Points)
Replied 14 June 2018

Well explained Sir. 👍👍👍

Shivani (Learner) (1881 Points)
Replied 15 June 2018

Dear dhirajlal sir

can u please email me the said rules at

shivaniadream @ gmail.com

Thanks

Shivani (Learner) (1881 Points)
Replied 15 June 2018

sir where is it written in rule 39 that the package must exhibit Maximum Retail Price.

To which items MRP applies on which it doesnt?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 15 June 2018

Originally posted by : Shivani
	sir where is it written in rule 39 that the package must exhibit Maximum Retail Price. To which items MRP applies on which it doesnt?

REFER THE ACT :: https://consumeraffairs.nic.in/forms/contentpage.aspx?lid=658

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 15 June 2018

What is Maximum Retail Price?

Maximum Retail Price (MRP) is the highest price that could be charged for a product. Retailers can choose to sell something at a price lesser than this cap but selling at a price over the MRP can attract fine.

Places where MRP becomes redundant

Remote areas which have a supply-demand mismatch often find a distortion in the pricing of products. Multiplexes also reportedly charge customers much more than the MRP for food and drinks

MRP versus free market pricing

Critics of MRP come from the free market stable, who argue that fixing a maximum retail price for any product is cumbersome, restrictive and thus against the principle of free and fair trade. Such a regulatory measure, they add, has no relevance in the post-Liberalisation era where the market is considered to be a more effective stabiliser than any official mechanism.