Maharashtra, Karnataka crack whip on dual MRPs

Maharashtra has booked the most cases for dual pricing of a packaged commodity in violation of maximum retail price (MRP) rules.

According to data furnished by the government recently, around 3,725 cases were booked for dual MRPs in Maharashtra from 2013-14 to 2015-16. Karnataka had registered 2,538 cases. These constituted around 25 per cent and 17 per cent, respectively, of complaints registered across the country under dual MRPs.

The Legal Metrology (Packaged Commodities) Rules, 2011, makes it illegal to charge different prices for a packaged product within a state.

For example, a one-litre bottle of packaged mineral bottle might cost more in cinemas, railway stations, malls, multiplexes, airports, etc, than at a roadside shop. Sometimes the manufacturers themselves print a different price on products, while some dealers also do it. In both cases, it ends up harming the interest of consumers.

The Centre had in a letter issued in December 2016 directed all state governments and Union Territories to stop the practice of dual MRPs for the same commodity within the same state. The directive was issued after it got several complaints from consumer rights activists and others that many cinemas, stadiums, multiplexes and other places within a city or state were charging dual MRPs for the same packaged food items. It was also found that at airports and movie halls, packaged food items were being sold at a higher rate than outside. Hotel owners, on their part, had justified selling such goods at a price higher than the MRP because they provide additional services such as air-conditioning, sitting, etc.

The Maharashtra government had subsequently cracked down on the practice and booked 134 establishments for violation of the packaged commodities rules.

Five manufacturing companies were also asked to explain within seven days why varying rates were being charged for the same product. Officials said investigations had showed that many malls and multiplexes in and around Mumbai sold packaged aerated drinks and mineral water at 10-30 per cent more than the printed MRP.