Fictitious MRP practice continues
See attached product called special pillow cover packaged product with selling price of INR 699.
For everyone’s reference I am sharing the label of the product which displays MRP of 9999
This is called fictitious MRP designed by the manufacturer so the retailer or dealers can profiteer and loot the consumer.
If legal metrology dept doesnt take action on this I dont know who can.
The manufacturer is based in gurugram so haryana controllers must act asap. more
These inflated MRP stickers help online sellers, malls or even stores where they claim they are giving you 50-90% discount and buyers too fall prey of such tricks. These things are happening just because of the inefficiency or lack of laws or difficult procedure to implement these laws. Consumer Courts are toothless, their decisions good for paper only. You can't get them implemented easily. If the amount is bigger, it can take 5-10 years to reach the final stage. Nothing much can be done except you need to be careful while buying such items. more
1) a) Suggestion given by Shri HP Agrawal is very good. (b)Before GST there was Central Excise Duty in which there was a provision of Taxing Central Excise Duty on MRP value (allowing abatement for actual expenditure after the factory gate). I think now, in GST is calculated on sales price and this is benefitted only to sellers. Why this practice is changed is better known to GST counsel. 2 (a)There are two categories in GST, one exempted products and exempted manufacturers/service providers on the basis of their annual turnover. In both these categories there is no control of GST Department (as per my knowledge). In such a situation, MRP is printed as per requirement of seller and nothing to do with the GST/tax as they are exempted from tax. This is loophole where black money is generated, and Govt has done nothing about it. (b) On the other hand, these exempted unit never show their actual turn over in order to remain under exemption limit. 3 The existence of Weights, Measures / Enforcement Department either state or central is never felt in last 40 years in India. more
In India, it is free for all businessmen to print any MRP or quantity/specs. There is no effective law in place to check such mal-practices in vogue for the last 50 years. All consumables/eatables, hardware/electrical items of domestic use, medicines, medical accessories are covered by this menace. The Consumer Affairs Minister should take the initiative of enacting suitable laws to provide severe punishment to the wrong doers within 3 months to protect the interest of consumers. more
There are many products which carry fictitious MRP. For example hearing aids, light fittings. more
A law should be passed to stop sales of goods by the firm as soon as a fraud MRP is noticed. more