Modify the MRP Act with the changed times

- Antenna: Vivek Mehta

- MRP at 200 to 1000 per cent higher than the production cost to give discounts to change the law to prevent cheaters need to change: income tax evasion will also decrease

Today, at the airport and in five-star hotels, the MRP printed on a bottle of mineral water costs twice as much as four times as much. Thus, the Government of India enacted the Maximum Retail Price Act in the 1970s and made it mandatory to write the maximum retail price - maximum retail price on products. After amending the Standard of Weight and Measurement Act-18, the rules of maximum retail price were prepared. No higher price can be charged than MRP. The general belief is that the company determines the MRP by adding its own profit, including the employee's salary, the interest on the investment it has made for the industrial unit-machinery, the cost of raw materials and advertising, and the margins of the wholesalers to the retailers.

There is no control over writing this MRP today. As a result, profiteering is taking place instead of profit. MRP is written 15 to 20 times more than the production cost by packaging in a rugged manner. Then he pretends to give cheap goods to the customers by giving 20 to 30 percent discount. The customer is satisfied to find the cheapest. In fact, after getting 30 to 40 percent discount, the customer pays 100 to 200 percent more and brings the product. This is because today there is no fixed formula for determining the MRP of every product. Every manufacturer writes a profitable MRP. Branded manufacturers add the cost of research behind it. Its imitators make a profit by placing prices close to the price of a branded product. Companies selling online need time to wake up to consumer protection organizations to stop this profiteering. Attractive looking children’s toys, branded watches, auto parts, machinery parts each have a brazen MRP written on them. It is then sold at a 20 to 30 percent discount. Thousands of products are sold in India at significantly lower rates than its MRP. So the scope for consumer deception remains high. Duplicates of other big brands are also sold in the market. Teri Bhi Chup and Mary Bhi Chup try to protect their brand by getting it investigated through private agencies so that the big brand does not break its business. Companies make every effort to protect their customers from duplication. A cartel of manufacturers is also formed. That is why MRP is written high.

This situation is difficult to control. But not impossible. A new MRP Act should be drafted to control prices. There is an authority like NPPA to determine the price of essential medicines, this type of authority should be created for each product. The MRP should be allowed to be printed only after the MRP determined by the Authority seems reasonable. Only then will consumers get a fair return on their money. Under our current law, it is a crime to sell goods at a higher price than the MRP. But there is no such thing as a randomized MRP. It is not considered a crime. So manufacturers or producers take advantage and print random MRPs. Every other product should be forced to write the cost of production. Doing so will also stop the rampant theft of GST. Earlier, excise was levied on goods when they left the production unit. In order to reduce the excise duty, the manufacturers had to write down the MRP and tax it separately. Profits in the name of tax were limited at that time. With the advent of the Goods and Services Tax, this reins have been loosened. Forcing production costs to be written on everything will also give an estimate of how much profit companies make and how much income tax they pay. Yes, consumers have a way of fighting it. They can file a class section suit under section 3 (1) (c) of the Consumer Protection Act 2018. The class section suite can only be filed with the approval of the District Consumer Forum or the Commission. Now wake up the customer.