What Is MRP And How Does It Work?

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Maximum retail price is the highest price labeled on the product which can be charged by the seller of that product. In India all the products have the MRP stated on them which enables the customer to know the highest price that can be charged from them. It is compulsory for all the sellers to mark the MRP. The concept of MRP was introduced in India in 1990 after the amendment of Standards of Weights and Measures Act, 1997. Before the introduction of the MRP amendment, the retailer was allowed to either mark the local price on the product or MRP. This made the retailer charge more than the expected and real price from the consumers. After looking into the increased corruption at the price the amendment was introduced to ensure that the consumers are further not cheated.

The MRP is now governed by the Legal Metrology Rules (Pre Packed Commodities) PCR, 2011. These rules states-

• ‘All packed commodities shall be affixed with a label that is legible and prominent, and such label shall contain declaration including the MRP’
• Also, no exceptions are given for the retailers who tend to sell the only a single brand of any commodity.
• After the amendments made in the Pre Packed Commodities rules,2011 the goods that are shown by the seller on the electronic networks used for that transaction related to the e-commerce  will have to compulsorily mention the name and address of the manufacturer, packer and importer, name of the commodity, net content, maximum retail price, consumer care numbers, etc.
• The medical devices which are listed under the drugs like a valve, syringes, etc should compulsorily state the MRP and also provide the declaration that had been made compulsory under the PCR.
• Also, it is prohibited to state two MRP on the same product. This has been brought to ensure that the consumers do not get confused in paying the price at places where the items are expected to be charged higher like airports, a movie hall.
• It has been made compulsory for the manufactures involved in Read More