There cannot be two MRPs for the same product, ruled the district consumer disputes redressal commission, Mohali, while imposing a ₹2 lakh-penalty on a soft drink manufacturer and a Zirakpur food outlet for malpractice.
Apart from the ₹2-lakh punitive damages, that Kandhari Beverages Private Limited, Fatehgarh Sahib, and Jubilant Food Works Limited have to deposit in the Legal Aid Account of the commission, they have also been directed to pay ₹10,000 as compensation to the complainant for mental agony and harassment.
The order came on the complaint of Vaibhav Goyal, a resident of Sector 20, Panchkula, who had challenged different prices of the same Coca Cola bottle produced by Hindustan Coca Cola Beverages Private Limited and Kandhari Beverages Private Limited.
Goyal had submitted that he visited Paras Downtown Square, Zirakpur, on August 17, 2017. There, he went to the food outlet of Jubilant Food Works Limited, where he was asked to pay ₹60 for a Coca Cola bottle that is available for an MRP of ₹35 in the market.
‘No prohibition on dual pricing of products’
{{/usCountry}}‘No prohibition on dual pricing of products’
{{/usCountry}}Seeking dismissal of the complaint, Kandhari Beverages and Jubilant Food Works claimed there was no prohibition on dual pricing of products.
“The products with higher MRP are manufactured for high-rated outlets, who invest huge amount of money to provide high level of comfort to their customers and the customers also take it as a ‘status symbol’ to buy and sit in high-rated eating joints. Moreover, the customer enjoys luxury, comfort and ambience of the outlet also,” they said.
Kandhari Beverages claimed that being the manufacturer, they could fix different prices for the same product for different consumers, a concept already judicially upheld and legislatively recognised.
No difference can be created between the customers: Commission
Disposing of the complaint, the commission held, “We cannot allow such type of practice of creation of difference between customers by companies. We cannot appreciate this view that there can be two MRPs for the same product, one is sold at ₹60 and another at ₹35 in the common market.”
“It is also possible that the manufacturer (Kandhari Beverages Private Limited) illegally benefitted from this. Such types of manipulations are barred and are termed as malpractices in the new Consumer Protection Act,” read the order, which was made available on February 17,
Dismissing the allegations against Hindustan Coca Cola Beverages Private Limited, the commission said, “Heavy punitive damages are imposed on the manufacturer and food outlet in order to prevent and discourage them from indulging in such type of malpractices. Moreover, they have earned huge amounts of unjustified profits at the cost of hapless consumers.”