Consumer Commission slaps ₹7,000 fine on restaurant for selling water, beverages above MRP

A consumer disputes redressal commission in Tumakuru recently slapped a restaurant with a fine of ₹7,000 for charging above the maximum retail price (MRP) in addition to Goods and Services Tax (GST) on beverages. [Nandeesh vs Vaishali Deluxe Comforts]

A coram of President GT Vijayalakshmi and members Kumara N and Nivedita Ravish noted that as per Legal Metrology (Packaged Commodities) Rules, sale of packed commodities at a price above the retail price is prohibited.

In the order dated September 21, the commission further observed that the rules do not exclude restaurants and there cannot be two MRPs except in accordance with the law.

"In view of the above Rule, there cannot be two MRPs except in accordance with the law and a service provider cannot charge an amount more than the MRP," the commission said.

The commission was hearing a complaint by a customer alleging that for a bottle of water and a bottle of Sprite, each priced at ₹20, he was charged an amount exceeding the MRP in addition to a 5% GST, resulting in a total price of ₹24.14 per bottle.

The Commission took note of Legal Metrology (Packaged Commodities) Rules and determined that they applied to restaurants as well.

Stating that there cannot be two MRPs except in accordance with law, the Commission observed that charging above the printed MRP amounted to unfair trade practice on part of the restaurant.

The Commission further noted that despite receiving a lawyer's as well as a the commission's notice, the restaurant had not appeared to defend its case.

It observed that for the acts of the restaurant, the complainant had to approach the Commission and suffer agony. For this, it determined that the restaurant was liable to pay ₹3,000 as litigation expenses and ₹4,000 for the mental agony suffered by the complainant.

[Read Order]