Answer By law4u team
Displaying the Maximum Retail Price (MRP) of products is a key consumer protection measure in India and many other countries. It ensures transparency in pricing and prevents sellers from charging more than the legally prescribed maximum. With the rapid growth of online retail, it is crucial that e-commerce platforms also comply with MRP display regulations to safeguard consumer interests.
Legal Requirements for Displaying MRP Online
1. Consumer Protection Act, 2019
The Act mandates that all goods sold to consumers must have the MRP clearly displayed. This includes online sales where the MRP must be shown on the product listing and invoice.
2. Legal Metrology (Packaged Commodities) Rules, 2011
These rules require packaged goods to display MRP on the label or packaging. Online sellers must ensure that the product image or description clearly shows the MRP.
3. Bureau of Indian Standards (BIS)
Products under compulsory BIS certification must also display MRP as per labeling standards.
4. E-commerce Guidelines by Government of India
E-commerce platforms must not mislead consumers by hiding MRP or inflating discounts falsely. The original MRP and the selling price must be clearly visible.
How Displaying MRP Protects Consumers
- Prevents overcharging beyond the maximum price fixed by manufacturers or regulators.
- Ensures transparency in discounts and offers.
- Helps consumers compare prices across platforms fairly.
- Enables consumers to check for fake or duplicate products.
Practical Compliance Tips for Online Sellers
- Always show the exact MRP as printed on the product packaging.
- Display MRP clearly on the product page near the selling price.
- Mention if the price is inclusive of GST and other taxes.
- Avoid showing misleading discounts that exaggerate savings based on inflated MRPs.
- Ensure invoices sent to customers include MRP details.
Penalties for Non-Compliance
- Fines up to ₹25,000 under the Legal Metrology Act.
- Possible suspension or cancellation of business licenses.
- Consumer complaints leading to legal action.
- Negative impact on brand reputation and consumer trust.
Example
An online seller lists a smartphone for ₹15,000 but does not display the MRP anywhere on the product page. A customer complains to the consumer forum.
Correct Practice:
- Display the smartphone’s printed MRP on the product page, e.g., MRP: ₹18,000
- Show the discounted price clearly next to the MRP
- Provide an invoice mentioning the MRP and selling price
- Avoid false claims like 70% off if the discount is exaggerated
