The Union ministry of consumer affairs on Thursday decided to ban the “dual” MRP policy, a practice through which sellers charge a higher MRP for their products in certain spaces like malls, airports and hotels. They add extra VAT just due to the location it is sold at.
This order will come into effect from January 1, 2018 and companies will not be allowed to charge a different price for water, soft drinks or snacks at premium locations.
This price differentiation was noted by Legal Metrology Organization of Maharashtra (LMO). They researched different places such as airports, malls and super markets and found that products were sold at higher prices than usual in spite of having the same quality, quantity and weight.
Controller of legal metrology, Amitabh Gupta, told TOI,
It has been a long-drawn-out battle because the big companies approached the Bombay high court and other fora. They claimed the Legal Metrology Act was silent on dual MRP so they could charge a different price. The Act has now been amended to prohibit companies from levying two different MRPs for a single product unless done under legal provisions. Clearly, there is no law that permits them to do so.
Amitabh Gupta also said,
This is a huge decision in protection of consumer rights. It has been a long drawn battle and this practice needs to be stopped.
Citizens may complain on the Facebook page ‘Legal Metrology Maharashtra Consumer Grievances’ or WhatsApp number 9869691666 or send a mail to [email protected]