If you are stuck in such a situation, here is what to do.

Mr. Alok Verma recently shared a frustrating experience that many of us can relate to. During a road trip on the Chandpur-Sonapur Expressway, he stopped at a popular restaurant, ‘The Royal Diner’. He purchased a 330ml can of a popular soft drink, ‘FizzUp’, and was surprised to see the Maximum Retail Price (MRP) printed on it was ₹75.

This struck him as odd because the same brand’s 300ml can, which he regularly buys from online platforms like ‘SwiftCart’ and local convenience stores, has an MRP of only ₹40. He was paying almost double the price for a negligible increase in quantity. This raises a pertinent question about the practice of ‘dual MRP’ – having different MRPs for the same product depending on where it is sold.

Mr. Verma argued that while restaurants claim to provide “service value,” customers already pay GST and often a service charge on the food bill. For a pre-packaged, sealed item like a soft drink, what additional service justifies such a steep price difference? He wondered if this was a legal loophole being exploited or a practice that has been implicitly accepted, disproportionately affecting the average consumer.

Advice in such cases

The issue of dual MRP and differential pricing in establishments like hotels, restaurants, and cinemas is a complex legal area. While it may seem unfair, the practice has been a subject of legal debate for years.

• The core argument from hotels and restaurants is that they are not merely selling a product but providing a comprehensive service. This includes the ambiance, seating, air conditioning, crockery, and staff service. The sale of a packaged item is considered part of this larger service.
• The Supreme Court of India, in the case of the Federation of Hotel & Restaurant Associations of India, has previously held that the provisions of the Legal Metrology Act may not apply to items served within a hotel or restaurant, as it constitutes a service and not a direct retail sale.
• However, it is illegal for any establishment to charge more than the MRP printed on the specific package you are buying. The issue here is not charging *above* MRP, but the manufacturer printing a *higher* MRP for the same product intended for these specific channels.
• Consult with a Lawyer: The very basic and important step to start is to talk to a lawyer/advocate. You should not hesitate in paying his consultation fee i.e. might be in the range of Rs. 10,000 to 50,000, depending on the case. He is helping you in this situation to come out. He is an 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

Understanding the laws involved is crucial to addressing this issue. The primary statutes governing this area are:

• The Legal Metrology Act, 2009: This Act regulates trade and commerce in weights, measures, and other goods which are sold or distributed by weight, measure, or number. It aims to ensure accuracy and protect consumers.
• The Legal Metrology (Packaged Commodities) Rules, 2011: These rules were amended to explicitly state that “no manufacturer or packer or importer shall declare different maximum retail prices on an identical pre-packaged commodity by adopting restrictive trade practices.” This was intended to curb dual MRP. However, its application to the hospitality industry remains a grey area due to court interpretations.
• The Consumer Protection Act, 2019: This Act is the primary tool for consumers. If you are charged more than the MRP printed on the product, it constitutes an “unfair trade practice,” and you can file a complaint before the appropriate Consumer Disputes Redressal Commission.

If you are the complainant

If you believe you have been wronged and wish to pursue the matter, here are the steps you should take:

• Document Everything: Keep the bill provided by the restaurant. Take a clear photograph of the product, ensuring the higher MRP is visible. If possible, also take a picture of the menu where the price is listed.
• Obtain Comparative Evidence: Purchase the same product from a regular retail store and keep the receipt and the product to show the price disparity.
• File a Complaint: You can file a complaint with the District Consumer Disputes Redressal Commission. The complaint should clearly state the facts, the price difference, and why you believe it constitutes an unfair trade practice.
• Consult with a Lawyer: The very basic and important step to start is to talk to a lawyer/advocate. You should not hesitate in paying his consultation fee i.e. might be in the range of Rs. 10,000 to 50,000, depending on the case. He is helping you in this situation to come out. He is an 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

If you are at the establishment and feel you are being overcharged (i.e., charged more than the MRP printed on the item), here’s what you can do at that moment:

• Question the Management: Politely bring the issue to the attention of the restaurant manager. Point to the MRP printed on the product and the price on the bill.
• Refuse to Pay the Difference: You are legally not obligated to pay any amount over the printed MRP. Pay only the amount stated on the product.
• Keep the Proof: Insist on a proper bill and retain it as evidence in case you decide to file a formal complaint later.
• Consult with a Lawyer: The very basic and important step to start is to talk to a lawyer/advocate. You should not hesitate in paying his consultation fee i.e. might be in the range of Rs. 10,000 to 50,000, depending on the case. He is helping you in this situation to come out. He is an 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

Approaching the police for an MRP-related issue might not yield immediate results. This is primarily considered a consumer dispute, which is civil in nature. The police will likely advise you to approach the Department of Legal Metrology or the Consumer Commission. A police complaint would only be relevant if there are elements of fraud or cheating as defined under Section 318 of the Bharatiya Nyaya Sanhita (BNS), which is rare in such cases. Their role is limited as specific authorities are designated to handle such violations.

FAQs people normally have

Is dual MRP legal in India?
The law, specifically the Legal Metrology (Packaged Commodities) Rules, prohibits dual MRP for identical products. However, judicial interpretations have created an exception for the hospitality industry, distinguishing between a retail sale and a composite service. So, while it’s illegal in retail stores, it is often practiced and legally defended in restaurants, airports, and cinemas.

Can a restaurant charge more than the MRP printed on the product?
No. No seller can charge a price higher than the MRP printed on that specific package. The issue is that manufacturers print a higher MRP on products intended for these establishments.

What about the service charge added to the bill?
Service charge is different from MRP. As per government guidelines, a service charge is voluntary, and a customer can refuse to pay it if they are not satisfied with the service. It cannot be mandatorily imposed.

What evidence is required?

To build a strong case, you will need the following evidence:

• The original bill from the establishment showing the item and the price charged.
• The product package itself, or a clear photograph showing the brand, quantity, and the inflated MRP.
• A similar product purchased from a general store with its lower MRP and bill for comparison.
• Photographs of the menu if it lists the price of the item.

How long will the investigation take?

The timeline for resolution can vary significantly:

• A complaint to the Controller of Legal Metrology might be resolved within a few weeks to a couple of months, often resulting in a fine or warning to the establishment.
• A case filed in a Consumer Commission is a quasi-judicial process and can take much longer, typically ranging from six months to a few years, depending on the complexity of the case and the workload of the commission.

Advocate Sudhir Rao, Supreme Court of India