What to Do When a Product is Sold for More Than MRP in the USA

Have you ever bought a product only to find out the price on the checkout was higher than what you initially saw on the shelf? This is a common issue in the USA, especially in relation to the Maximum Retail Price (MRP) which is the highest price set by the manufacturer for the retail sale of a product. Issues of overpricing can be frustrating, and we will guide you through the necessary steps to address this matter.

Understanding MRP and Its Importance

The Maximum Retail Price (MRP) is the price calculated by the manufacturer, set as the highest price at which a product can be sold. This includes all reasonable charges for storage and handling, taxes, and a reasonable profit margin. As per the Legal Metrology Act 2008, selling a product at a price higher than the MRP is illegal unless the retailer has a valid reason to justify the price increase.

What Constitutes Overcharging?

The situation arises when a retailer charges a customer more than the MRP. According to the Legal Metrology Act 2008, a retailer can be fined or even face imprisonment for selling a product at a price higher than the MRP. Retailers are not allowed to print a price tag over the already printed MRP sticker.

Exceptions to Overcharging

There are certain circumstances in which a retailer may sell a product at a price higher than the MRP without facing any legal consequences. These include:

Restaurants, Hotels, and Theatre: The Supreme Court, in a judgment in December 2017, allowed this for restaurants, hotels, and movie theaters because they provide an environment and a service in addition to the product, such as ambiance at a restaurant or equipment to enjoy a meal in a movie hall. High-Altitude Shops: Retailers can sell pre-packaged food at a higher price than MRP if the storage and supply costs in a high-altitude area are higher than usual. This is to balance the availability of products with the retailer's interest.

However, retailers must be able to prove these justifications to avoid legal trouble.

What Can You Do If Overcharged?

If you encounter a situation where a product is sold for more than the MRP, you have the right to seek redressal through legal and administrative channels. Here’s how you can do it:

Collect Evidence

When the situation arises, take a bill (cash memo) from the shopkeeper and submit it with a photo or a copy of the packaging that mentions the MRP. This documentation is crucial for any further action.

Contact Authorities

There are several ways to lodge a complaint:

Helpline Number: You can call the helpline number 1800-11-4000 or 1800-11-14404 between 9:30 AM and 5:30 PM on weekdays (excluding National Holidays). Send an SMS: You can also register the complaint by sending an SMS to 81300 09809. Online Complaint: Under the provisions of the New Consumer Protection Act 2019, an electronic option is available to file complaints. You can file your complaint through one of the forums depending on the value of the claim.

The Importance of Reporting Overcharging

Selling a product at a price higher than MRP is not just an inconvenience for consumers; it is also a form of exploitation and a contributing factor to tax evasion. As responsible citizens, it is our duty to inform the appropriate authorities about such practices.

Conclusion

Overcharging consumers is illegal and can be addressed through various channels. By understanding MRP, the reasons behind price fluctuations, and the steps to report overcharging, you can ensure fair business practices and contribute to a more transparent market.