What are the rules for MRP?

Manufacturers must identify the MRP inclusive of all taxes on all pre-packed items intended for retail sale under the Standards of Weights and Measures (Packaged Commodities) Rules[1]. This is a requirement to ensure that consumers are not misled about the price of packaged goods by agents/dealers and shopkeepers.

Can you set a maximum retail price?

Suppliers can generally use non-binding recommended or maximum resale prices. However, in each case, the RRPs or maximum retail prices must not be disguised minimum resale prices or fixed resale prices. In particular, retailers must be allowed to resell products at prices below the RRPs or maximum resale prices.

Who decides maximum retail price?

The manufacturer who wishes to revise the MRP of his products must give at least two advertisements in newspapers, intimating the price change to the customers. At the same time, they must intimate the price change to the company director, legal metrology, and controller of legal metrology in respective states.

What is maximum retail price printed on products?

MRP is the highest price which can be charged for the product… However retailers may sell products in lesser price… It is printed on products so that shops do not charge costumers over MRP….

What is minimum retail price?

The Logical Indian It is the price at which a product was made available to a retailer by the manufacturer. Therefore, it is the lowest price at which the retailer can sell the product. Selling at above the MRP is prohibited, though this is a rule that is rarely followed in India.

Is setting a maximum price illegal?

All price fixing, except vertical maximum price-fixing, is per se illegal. This means that the unreasonableness of the restraint (and hence its illegality) is conclusively presumed from the fact that the price was fixed by concert of action.

Is recommended retail price Legal?

The only time RPM is allowed is when prices are cut for marketing purposes starting from the launch of a product, up to a maximum of six weeks. However, manufacturers are allowed to set maximum resale prices. As long as they don’t end up dictating the price at which a retailer would need to sell the product.

What is the punishment for selling more than MRP?

As per the Legal Metrology Act 2009, if the retailer sells a product at a price higher than the MRP, shall be liable to pay a fine or face imprisonment. Neither the retailer can print a price tag to stick over the already printed price. As per Sec.

What is the maximum price printed?

The Maximum Retail Price (MRP) printed on packets is beneficial for us as consumers because it can restrict the seller from selling goods to us at a price which is more than the printed MRP. NOTE – Consumers have the right to bargain with the seller to sell at a price which is less than the MRP.

Why maximum retail price is important?

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.