MRP As We Know
Well, the government does not decide the price of anything made by a private manufacturer. The MRP is fixed by the manufacturer and is mostly inclusive of taxes unless otherwise mentioned. Thus, when a consumer buys a packaged commodity in the market, s/he is required to pay the MRP as indicated on its packaging.
The rationale behind printing the MRP on products is to protect the consumer from being overcharged by retailers. No doubt the MRP does its job well in informing consumers about the 'fair price' of a product, but it fails to give retailers the much-needed flexibility in determining the price based on various factors – services offered, location of the store – that determine the actual cost of a product for a retailer.
MRP under Legal Metrology Act – What We Must Know
According to Rule 6 (1) (e) of the Legal Metrology (Packaged Commodity) Rules, every package meant for retail sale should mention the retail sale price. The retail sale price has been defined in Rules 2 (r) as follows: Retail sale price means the maximum price at which the commodity in packaged form may be sold to the ultimate consumer and where such price is mentioned on package, it should be printed in the words: ‘Maximum retail price’ or ‘Max retail price, inclusive of all taxes’ or ‘MRP Rs, inclusive of all taxes’ or ‘MRP Rs incl. of all taxes’.
For the purposes of the clause ‘maximum price’ in relation to any commodity in packaged form, it shall include all taxes local or otherwise, freight, transport charges, commission payable to dealers and all charges towards advertisement, delivery, packing, forwarding and the like, as the case may be; Rule 23 mentions provisions relating to wholesale dealer and retail dealers.
Provided that publication in any newspaper of such revised price shall not be necessary where such revision is due to any increase in, or imposition of, any tax payable under any law made by the state legislation: Provided further that the retail dealer or other person shall not charge such revised prices in relation to any packages except those packages which bear marking indicating that they were pre-packed in the month in which such tax has been revised or fresh tax has been imposed or in the month immediately following the month aforesaid;