Look for the printed MRP on any packaged good
All packaged goods in India, ranging from beverages to mobile phones to cosmetics, are stamped with a price dictated by the manufacturer as being the maximum allowable cost to the consumer.
Today’s version of MRP was adapted in December 1990. Previous to this date, manufacturer’s had the option of printing the price of their commodities in two ways:
- Retail price Rs, local taxes extra
- Maximum retail price Rs, inclusive of all taxes
Allegations from consumers and organizations that merchants were over-charging by adding additional local taxes on products brought about the change to MRP in 1990. Merchants were tacking on charges under the guise of local taxes when the actual rates were much lower. Consumers could pay one price for a product and a much higher or lower price in a neighboring town. Thus the change was made by the Ministry of Civil Supplies and its executive wing, the Department of Legal Metrology to the Standards of Weights & Measures Act (Packaged Commodities’ Rules). The change was meant to end complaints and confusion of over-charging to consumers for products. There have since been numerous complaints regarding this system of pricing with regards to under-charging of goods relative to MRP.
What does this mean for you?
MRP can also be found on some packaged good labels
In theory you should check the MRP on products before purchasing. Some merchants will charge less than the printed price at their discretion. If this happens to me, I make a mental note to return to that store in the future. On the opposite side, some merchants will try to charge more. If questioned, you may get a response that a newer stock has since come into their store with a revised MRP under which they are selling the old stock. While this is not allowable, there isn’t much you can do unless the merchant feels you aren’t willing to ease on the lower price. Another tactic to watch for is a merchant quoting you a price which he/she will then offer a discount on. Being giddy about the prospect of receiving a discount, you may not check the MRP until you’ve reached your destination. Unwrap your item to discover the MRP is actually less than the discounted price you paid.
What can you do to protect yourself?
- Obtain full information regarding quality and price before making any purchases.
- Be careful, about false and /or misleading advertisement.
- Purchase only when you need and do not purchase in a hurry.
- Do not buy blindly. Demand full information before you buy.
- Do not compromise on the quality of goods and services and its quality. Purchase only quality products.
You can file a complaint with the District Forum if you feel you have been over-charged. However, the opposing party has 30 days to file their version of events and can even extend this for an additional 15 day period. As a tourist you have very little recourse legally unless you are a long term traveler in one location.
Do keep one thing in mind. As of 2003, hotels are not subject to the MRP act. Packed goods purchased within a hotel can be sold at the property’s discretion.
Keep your eyes open and always check prices cause your travel budget only goes so far.
at 10:43 am
Very informative article! Nice to know you have dug deep into the subject.
at 6:27 am
WHAT ABOUT UNPACKAGED GOODS EX TYRE .HOW
DO I KNOW WHAT IS THE MRP .IT IS NOT COMPULSORY TO WRITE MRP ON UNPACKAGED
GOODS.
at 11:23 am
Correct, MRP only applies to packed/packaged goods at this time.
at 2:31 pm
This was a very informative article. Thanks for sharing.
at 6:26 am
can a company charge different MRP rates for the same product, same quantity, quality, shape of the package at two different places and sell it? i found it like that and on the higher price it was written ‘to be sold in selected areas only’. i am aware of how theatre people sell it at a higher place but can the company themselves do that?
at 11:23 am
Yes, you may see the same product with different MRP in close proximity to each other as district tax rates can vary widely. MRP is inclusive of all taxes so a retail price may be higher or lower in one area to the next for the exact same product, packaging, contents only because of the individual city, district or state taxes.
at 11:26 am
y hotels are examted from MRP act ?isnt it unfair?
at 11:58 am
I can see your point however a bottle of water or a package of gum is a true commodity. It is easier to lay a blanket price to items like these where as every hotel is different. The services offered, locations, size of rooms, destination to tourist sites, etc. are so different, there would be no viable way to clump hotels into a uniform rate even based on a star level.
at 1:42 am
I can see your point however a bottle of water or a package of gum is a true commodity. It is easier to lay a blanket price to items like these where as every hotel is different. The services offered, locations, size of rooms, destination to tourist sites, etc. are so different, there would be no viable way to clump hotels into a uniform rate even based on a star level.
at 11:21 am
Hi, I have purchase Bedsheets Vijay Textiles Limited in Hyderabad. Each Bedsheet costed me Rs 832. I found the price on the Bedsheet been MRP 800 (Taxes Extra). I am just wondering, can somebody print an MRP (Taxes Extra) in 2011. I believe that MRP is Maximum retail price and it is inclusive of all taxes. I am just thinking is it allowable as per the law.
at 8:01 am
Hi Girish,
I have not seen or heard of that before. Hopefully another reader will have the answer for that.
at 1:25 am
It is my experince that MRP on certain articles are fixed far in excess of their actual price.This pave the way for the traders to exploit the cuatomers.
eg A ceiling fan worth Rs1200 – 1600 was printed with MRP Rs1800/- . g wet grinder worth Rs4100 had MRP Rs6230/- . If this is not cheating what it meant?
at 4:52 am
I have experienced same packed product is priced diffrently [MRP] at Malls. For Wxample aquafinna water is sold at malls is at 30/- per bottle and same pricing at airport. Is it allowed?
at 8:40 am
Pricing will vary on the same or similar products because of taxes. An item sold in one mall can be marked higher or lower in the very next city because of city, district or state tax codes. What is not allowed is charging more than the MRP printed on the item.
at 1:59 am
Why should not the Govt. ask the manufacturers to print different M.R.P. for the commodities to be sold in different places as is in case of alcohol with a tag prices for this state only. I am of the opinion that until purchases or sale of all the items is not compulsory with cash vouchers the theft of tax cannot be checked and so the prices.