What action can be taken when a restaurant selling a product charge above MRP ?


Applying Legal Metrology Act, 2009 to the given case.

Section 11 of the Act states- Prohibition of quotation, etc., otherwise than in terms of standard units of weight, measure or numeration-
(I) Aperson cannot in relation to any goods, things or service,-
(I) quote, or make announcement of, whether by word of mouth or otherwise, any price or charge, or
(b) issue or exhibit any price list, invoice, cash memo or other document, or
(c) prepare or publish any advertisement, poster or other document, or
(d) indicate the net quantity ofa pre-packaged commodity, or
(e) express in relation to any transaction or protection, any quantity or dimension, otherwise than in accordance with the standard unit of weight, measure or numeration.
(2) The provisions of sub-section (1) shall not be applicable for export of any goods, things or service.

Often when we buy cold pack of bottle or cold drink from shop, some shopkeepers do ask extra money for keeping the water or cold drink chilled in refrigator and ask for more than MRP. Charging more than the Maximum Retail Price (MRP) violates section 11 of the Legal Metrology Act. 2009 and the person guilty of such an act can be punished with a fine.
This issue was once brought before the court.

The Centre held that those restaurants which charge more than the Maximum Retail Price (MRP) actually helps these restaurants in tax evasion. In one of its judgements in 2018, the Hon’ble Supreme Court held that the restaurants can overcharge for stored bottles of water and cold drinks. The court held that the restaurants can do so because there is an element of service involved. The restaurant unlike the retailer would be providing the customer with required cutlery or any other additional service asked by the customer. The bench also observed in its judgement that one does not goes to a restaurant simply to buy a bottle of water or soft drink.

Hence, the restaurants are at no fault in charging extra prices over MRP and thus no action can be brought against them.




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