Mr. Sameer Khanna, a software developer from the city of Navpur, recently stayed at the luxurious ‘Sapphire Palace Hotel’ for a business trip. Late at night, he felt thirsty and took a bottle of a popular soft drink from the room’s minibar. The next morning, upon checking out, he was shocked to see the bill. The hotel had charged him ₹250 for the drink, even though the Maximum Retail Price (MRP) printed on the bottle was a mere ₹40. Mr. Khanna argued with the manager, pointing out the discrepancy, but was told that the hotel’s pricing was based on the service, ambiance, and convenience provided, not just the product itself. Feeling cheated, he wondered if the hotel’s actions were legal and what recourse he had.

Advice in such cases

The issue of hotels and restaurants charging above MRP is a nuanced one. While the law generally prohibits selling packaged goods for more than the printed MRP, the Supreme Court of India has clarified the position for the hospitality industry. The court has held that when a hotel or restaurant serves a product, it is not a simple retail sale but a provision of service. The price includes the ambiance, cutlery, service staff, refrigeration, and overall experience. Therefore, they are permitted to set their own prices for items served on their premises, provided these prices are clearly communicated to the customer beforehand, typically through a menu or a price list. If the price is not disclosed, it may be considered an unfair trade practice.

• Review the Menu: Always check the price list or menu provided in the room or restaurant before consuming any item. By ordering or consuming the item, you implicitly agree to the displayed price.
• Document Everything: If you believe you have been wronged, keep the bill and take a picture of the menu and the product with its MRP as evidence.
• Communicate with Management: Politely raise the issue with the hotel management first. Sometimes, a resolution can be found without escalating the matter.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

This issue is primarily governed by consumer protection and metrology laws rather than criminal codes like the Bharatiya Nyaya Sanhita (BNS).

• The Legal Metrology Act, 2009: This act regulates weights, measures, and standards. It mandates the printing of MRP on all pre-packaged commodities. Selling above MRP in a standard retail environment is a violation of this Act.
• The Legal Metrology (Packaged Commodities) Rules, 2011: These rules specify the declarations to be made on every package, including the MRP.
• The Consumer Protection Act, 2019: This is the most relevant law for a consumer. A person can file a complaint against a hotel for “unfair trade practice” or “restrictive trade practice” if they feel they were overcharged without prior notification or were misled. The Consumer Disputes Redressal Commissions (Consumer Courts) are empowered to hear such cases and provide relief.

If you are the complainant

If you have decided to pursue legal action against the hotel for overcharging, you are the complainant. Here are the steps you should follow:

• Gather all necessary evidence, including the final bill, photographs of the item’s MRP, and the hotel’s menu or price list.
• The first formal step is often to send a legal notice to the hotel through your lawyer, outlining your grievance and demanding a resolution (like a refund of the excess amount).
• If the hotel does not respond or refuses to comply, you can file a complaint in the appropriate Consumer Disputes Redressal Commission. The jurisdiction (District, State, or National) depends on the value of the goods and services and the compensation claimed.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

As a consumer who feels overcharged and wronged, you are the victim of what may be an unfair trade practice. It is important to know your rights and the avenues available for redressal.

• Understand that you have the right to be informed about the price of a product or service before you purchase it. If a hotel fails to display its prices clearly, it is a deficiency in service.
• You are entitled to file a complaint and seek compensation for the financial loss and mental agony caused.
• Do not be intimidated by the size or reputation of the hotel chain. The law is designed to protect the consumer, regardless of the opponent’s stature.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

In cases of overpricing by hotels, the police generally do not have a direct role. This is considered a consumer dispute, which is civil in nature, not a criminal offense under the Bharatiya Nyaya Sanhita (BNS). If you approach a police station, they will most likely advise you to file a complaint with the Legal Metrology Department or the Consumer Court. Police intervention would only occur if there were elements of criminal activity involved, such as fraud, cheating by impersonation, or threats, which is not typical in simple overpricing disputes.

FAQs people normally have

Is it always illegal to charge above MRP in India?
For regular retail stores, yes, it is illegal under the Legal Metrology Act. However, for establishments like hotels and restaurants that provide a service along with the product, the law allows them to set higher prices as long as they are clearly displayed to the consumer before the purchase.

What if the hotel did not have a price list for the minibar items?
If the price was not communicated to you before consumption, you have a very strong case. This can be considered an unfair trade practice under the Consumer Protection Act, 2019, as the hotel did not provide you with the necessary information to make an informed decision.

Can I just refuse to pay the exorbitant price at checkout?
You can certainly dispute the charge with the management. However, if the price was listed on a menu in your room, refusing to pay could lead to a confrontation. The better course of action is to pay the bill (perhaps under protest, which you can note on the bill if possible) and then pursue a legal remedy to recover the excess amount and seek compensation.

What evidence is required?

To build a strong case in a consumer court, you will need clear and convincing evidence. The most crucial pieces of evidence include:

• The original itemized bill from the hotel clearly showing the charge for the product in question.
• A clear photograph of the product showing the printed MRP.
• A photograph or copy of the hotel’s menu or minibar price list. If one was not available, a sworn affidavit stating this fact would be important.
• Any written communication with the hotel management regarding the dispute, such as emails or letters.

How long will the investigation take?

Since this is a consumer dispute and not a criminal case, there is no “investigation” in the way police would conduct one. The process involves filing a complaint and the subsequent proceedings in a Consumer Court. The Consumer Protection Act, 2019, aims for speedy disposal of cases. However, depending on the workload of the specific commission and the complexity of the case, it can take anywhere from a few months to over a year to get a final decision.

Advocate Sudhir Rao, Supreme Court of India