R. Prasad wanted to buy a refrigerator and after looking at various brands, he chose a 260-litre, frost-free model. When he asked about the price, the dealer told him that the maximum retail price (MRP) fixed by the manufacturer was Rs 16,500, but he would give it to him for Rs 14,000. Prasad thought that a discount of Rs 2,500 was a good deal . He therefore paid the dealer and asked him to have the product delivered. However, when it arrived, he was in for a surprise. The refrigerator carton mentioned the MRP as Rs 15,000 !
Obviously, this is another way the MRP is being misused. As per the Standards of Weights and Measures (Packaged Commodities) Rules, manufacturers have to specify on all pre-packed goods meant for retail sale, the maximum retail price inclusive of all taxes. This is a requirement meant to ensure that consumers are not misled on price by retailers. However, for many years, MRP has become a tool in the hands of retailers, to overcharge or mislead consumers.
For several years now, consumers and consumer groups have been protesting over the way unscrupulous dealers have been misleading buyers into believing that the maximum retail price was the actual selling price. They have also been pointing out the problem was exacerbated in certain cases where manufacturers print highly exaggerated MRPs. Manufacturers in turn have been arguing that in a competitive market, retailers can no more afford to charge the MRP and they would be forced to bring down the price. Well, seems like retailers have now begun to hike the MRP itself to show that they are offering a good bargain!
I also noticed last week, a food chain announcing a ‘discount sale’. And the discount was not on the retailer’s original price, but on the MRP marked on the products. In other words, he was showing the MRP as the actual selling price! So consumers need to be far more alert at the time of purchase. First and foremost, remember that MRP represents only the ‘maximum’ price and not the actual selling price and it would be well within you right to demand that products be sold at prices below the MRP indicated on packages.
Secondly, while buying expensive goods, it is always better to check the actual selling price or the dealer price at a few shops, compare the price, bargain and go for the best deal. Depending on the goods and the MRP, one can easily get the price reduced by 10-20 per cent of the MRP. .
In respect of white goods such as refrigerators, washing machines and air conditioners, where one does not get to see the product in its packaging, ask the dealer to show the price list of the manufacturer. In fact, with such goods, manufacturers should start putting a sticker specifying the MRP on the product itself.
Having said that, I must mention that Prasad can well proceed against the refrigerator dealer for unfair trade practice because what he did clearly comes under the definition of unfair trade practice in the Consumer Protection Act.
