Selling Pre-Packaged Products Above MRP Is Unfair Trade Practice: Thrissur District Commission
The Thrissur Consumer Disputes Redressal Commission bench comprising C.T Sabu, President, Sreeja S, Member and Ram Mohan, Member has held the Managing director of Kerala State Beverages Corporation ('KSBC') and the branch manager of KSBC's sales outlet liable for charging in excess of the MRP of a pre-packed commodity. Brief facts: The complainant purchased a package of...
The Thrissur Consumer Disputes Redressal Commission bench comprising C.T Sabu, President, Sreeja S, Member and Ram Mohan, Member has held the Managing director of Kerala State Beverages Corporation ('KSBC') and the branch manager of KSBC's sales outlet liable for charging in excess of the MRP of a pre-packed commodity.
Brief facts:
The complainant purchased a package of 'Macdowell VSOP brandy' ('product') from the sales outlet of Kerala State Beverages Corporation ('Company'). As per the complainant, the product was having a declared Maximum Retail Price ('MRP') of Rs. 740/- but the invoice was raised for Rs. 800/-. The complainant stated that a sum of Rs. 60/- has been illegally collected from him. Hence, he filed a consumer complaint against the Managing Director of the company and the Branch Manager of the company's sales outlet before the district commission at Thrissur praying for appropriate compensation.
Observations of the commission:
The commission, at the outset, examined the empty bottle of the product having an MRP of Rs. 740/- and the invoice charging Rs. 800/- for the same which was also not disputed by the company.
The bench placed reliance on Legal Metrology Act, 2009 and rule 18 (2) of the Legal Metrology (Packaged Commodities) Rules, 2011 which prohibits a retailer or other persons including manufacturers from selling any pre-packed commodity at a price exceeding the retail sale price. Reliance was also placed on Rule 18 (6) which forbids a manufacturer or packer from altering the price on the wrapper once printed and used for packing. Thus, it was observed that the excess charging of the product by the company was unlawful and amounts to deficiency in service. It was further observed that such acts of over charging amount to unfair trade practice inflicting agony and hardship on the complainant.
The bench also discussed Rule 18 (3) which permits the sale of a pre-packaged commodity at a price exceeding the MRP only in cases where there has been a tax revision after packing. The rule further provided that tax revision must have taken place either during the month in which the commodity was packed or in the succeeding months of pre-packing.
It was observed that the product- brandy bottle was packed in the month of October 2017 and an amount in excess of the MRP could have been charged only in case of tax revision either in October 2017 or November 2017. Since no order / law was produced by the company to show any tax revision, the bench held the excess charging to be unlawful.
The bench also condemned the act of the company to charge from the consumers in excess of MRP marked on pre-packaged commodities. It highlighted the bounden responsibility of government owned companies engaged in trade / retail to be a model vendor / retailer.
Directions were passed to the managing director of the company- Kerala State Beverages Corporation to ensure that the shops operating under its control display the specific provision of law which empowers the shop owners to legally charge in excess of the MRP.
Hence, the complaint was allowed with the following reliefs:
- Refund of a sum of Rs. 60/- charged in excess of MRP.
- Rs. 5,000 as compensation for loss and mental agony.
- Rs. 10,000 as litigation costs.
- Directions were passed to discontinue the sale of pre-packed commodities in excess of MRP.
All amounts were ordered to be jointly paid by the managing director and the branch manager.
Case Title: Lenish V.R vs Managing Director, Kerala State Beverages Corporation Limited
Case Number: CC 241/2018
Date of Decision: 27.06.2025