Maximum retail price: Difference between revisions
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'''Maximum retail price''' ('''MRP''') is a manufacturer-calculated price that represents the highest amount at which a product can be sold to consumers in certain countries, including India, Bangladesh, and Sri Lanka.<ref>{{cite web |url=https://www.ppms.in/blog/what-is-the-meaning-of-mrp-mop-or-srp/ |title=MOP, SRP, or MRP: Full Form, Meaning, Definition, Example in Retail |publisher=PPMS |access-date=2024-07-11}}</ref> The MRP is typically printed on product packaging and includes all applicable taxes.<ref>{{cite web |url=https://testbook.com/full-form/mrp-full-form |title=MRP Full Form: What is Maximum Retail Price and its rules |publisher=Testbook |date=2024-01-01 |access-date=2024-07-11}}</ref> This pricing system aims to protect consumers from overcharging and provides transparency in retail transactions.<ref>{{cite web |url=https://lawbhoomi.com/maximum-retail-price-and-its-laws-in-india/ |title=Maximum retail price and its laws in India |publisher=LawBhoomi |date=2023-01-31 |access-date=2024-07-11}}</ref> |
'''Maximum retail price''' ('''MRP''') is a manufacturer-calculated price that represents the highest amount at which a product can be sold to consumers in certain countries, including India, Bangladesh, and Sri Lanka.<ref>{{cite web |url=https://www.ppms.in/blog/what-is-the-meaning-of-mrp-mop-or-srp/ |title=MOP, SRP, or MRP: Full Form, Meaning, Definition, Example in Retail |publisher=PPMS |access-date=2024-07-11}}</ref> The MRP is typically printed on product packaging and includes all applicable taxes.<ref>{{cite web |url=https://testbook.com/full-form/mrp-full-form |title=MRP Full Form: What is Maximum Retail Price and its rules |publisher=Testbook |date=2024-01-01 |access-date=2024-07-11}}</ref> This pricing system aims to protect consumers from overcharging and provides transparency in retail transactions.<ref>{{cite web |url=https://lawbhoomi.com/maximum-retail-price-and-its-laws-in-india/ |title=Maximum retail price and its laws in India |publisher=LawBhoomi |date=2023-01-31 |access-date=2024-07-11}}</ref> |
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In countries where MRP is enforced, it is illegal for retailers to charge more than the specified price, although they may sell products at a lower price.{{cn}} The concept of MRP differs from systems using a recommended retail price (RRP) in that the MRP is legally enforceable, whereas an RRP is merely a suggestion. |
In countries where MRP is enforced, it is illegal for retailers to charge more than the specified price, although they may sell products at a lower price.{{cn}} The concept of MRP differs from systems using a recommended retail price (RRP) in that the MRP is legally enforceable, whereas an RRP is merely a suggestion.{{cn}} |
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== History == |
== History == |
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Revision as of 11:22, 11 July 2024
Maximum retail price (MRP) is a manufacturer-calculated price that represents the highest amount at which a product can be sold to consumers in certain countries, including India, Bangladesh, and Sri Lanka.[1] The MRP is typically printed on product packaging and includes all applicable taxes.[2] This pricing system aims to protect consumers from overcharging and provides transparency in retail transactions.[3]
In countries where MRP is enforced, it is illegal for retailers to charge more than the specified price, although they may sell products at a lower price.[citation needed] The concept of MRP differs from systems using a recommended retail price (RRP) in that the MRP is legally enforceable, whereas an RRP is merely a suggestion.[citation needed]
History
The concept of Maximum Retail Price (MRP) in India emerged from post-independence economic policies aimed at consumer protection and price control. The system was formally introduced in 1990 by the Ministry of Civil Supplies, Department of Legal Metrology, through an amendment to the Standards of Weights and Measures Act (Packaged Commodities' Rules) of 1976.[4][5]
Origins in India
Before the 1990 amendment, manufacturers in India could print either the maximum retail price (inclusive of all taxes) or the retail price (local taxes extra) on their products. However, it was observed that retailers often charged more than the applicable local taxes, leading to consumer exploitation. The amendment made it mandatory to print the MRP on all packaged commodities, aiming to prevent tax evasion and protect consumers from overcharging.[citation needed]
International Perspective
In contrast to India, most countries, including developed nations, do not have an MRP system. Instead, they use systems like the Manufacturer's Suggested Retail Price (MSRP) or Recommended Retail Price (RRP), which are non-binding recommendations.
Vereinigte Staaten
In the United States, the Sherman Antitrust Act of 1890 and the 1911 Supreme Court case Dr. Miles Medical Co. v. John D. Park & Sons Co. established that manufacturers cannot enforce price limitations on retailers. This led to the adoption of 'Manufacturer's Suggested Retail Price' (MSRP), which is not legally binding.[6]
European Union
In the European Union, practices similar to MRP are viewed with caution under competition law. Manufacturers can suggest retail prices, but these are non-binding recommendations rather than enforceable maximum prices.[7]
See also
References
- ^ "MOP, SRP, or MRP: Full Form, Meaning, Definition, Example in Retail". PPMS. Retrieved 2024-07-11.
- ^ "MRP Full Form: What is Maximum Retail Price and its rules". Testbook. 2024-01-01. Retrieved 2024-07-11.
- ^ "Maximum retail price and its laws in India". LawBhoomi. 2023-01-31. Retrieved 2024-07-11.
- ^ "Maximum Retail Price (MRP) | Origin, (Ir)Relevance". Retrieved 2024-07-11.
- ^ "Home | Department of Consumer Affairs | Ministry of Consumer Affairs Food and Public Distribution | Government of India". consumeraffairs.nic.in. Retrieved 2024-07-11.
- ^ "MSRP: The Secret Power of the Manufacturer's Suggested Retail Price". Tedium. 2022-08-05. Retrieved 2024-07-11.
- ^ "Recommending and agreeing retail prices: the limits under competition law". Pinsent Masons. Retrieved 2024-07-11.