Selling Liquor Above MRP Violates Consumer Rights: Thrissur Commission Holds KSBC Liable for Unfair Trade Practice
Pranav B Prem
The Thrissur District Consumer Disputes Redressal Commission, comprising President C.T. Sabu and Members Sreeja S. and Ram Mohan R., has held the Managing Director and the Branch Manager of Kerala State Beverages Corporation (KSBC) jointly liable for selling a pre-packaged product above its declared Maximum Retail Price (MRP). The Commission found such a practice to be not only unlawful but also a clear case of unfair trade practice and deficiency in service under consumer protection laws.
The complainant, Lenish V.R., purchased a 750ml bottle of Macdowell’s VSOP Deluxe Brandy from a KSBC outlet on 10 January 2018. Though the MRP marked on the bottle was ₹740, the KSBC outlet charged ₹800, collecting ₹60 in excess. The complainant presented both the invoice and the empty bottle as evidence, which were not disputed by the opposite parties. He subsequently filed a consumer complaint seeking refund and compensation for the financial loss and mental agony suffered.
The Commission examined the documentary evidence including the invoice and the bottle label, and found that the product was clearly marked with an MRP of ₹740 and a manufacturing date of October 2017. The bench concluded that the burden of proof shifted to the opposite parties to show the legality of charging in excess of the marked MRP. However, no convincing justification or proof of any tax revision for the relevant period (October or November 2017) was presented.
The Commission referred to Rule 18(2) of the Legal Metrology (Packaged Commodities) Rules, 2011, which clearly prohibits any retailer or other person from selling a packaged product above its declared MRP. Rule 18(3) permits charging above MRP only in case of tax revision, provided such revision occurred during the same month or the following month of packing. Since no such tax revision was proven, the Commission held the additional charge as illegal. It further noted that even manufacturers and packers are barred from altering prices once printed, as per Rule 18(6).
The Commission emphasized that this act amounted to both deficiency in service and unfair trade practice under the Consumer Protection Act. It observed that such acts, though seemingly involving small amounts, have a larger impact on consumer dignity and contribute to exploitation and distrust. The Commission underscored the duty of state-run enterprises like KSBC to act as model vendors by strictly adhering to the law.
The bench also took note of the consumer’s right to be informed under Section 6(b) of the Consumer Protection Act, 1986 [now Section 2(9)(ii) of the 2019 Act]. It criticized the absence of any visible justification in the KSBC outlet regarding legal provisions allowing any excess charge over MRP.
In its concluding order, the Commission allowed the complaint and directed the Managing Director and the Branch Manager of KSBC to jointly and severally:
Refund ₹60 collected in excess of MRP
Pay ₹5,000 as compensation for mental agony, hardship, and financial loss
Pay ₹10,000 as litigation costs
All amounts are to carry 9% interest per annum from the date of filing the complaint until full realization
Also Read: Gurgaon Consumer Commission: Selling Used Phone as New Amounts to Deficiency in Service
The Commission further directed the opposite parties to immediately discontinue the practice of selling pre-packaged commodities at prices exceeding their MRP. It also instructed the Managing Director to ensure that all KSBC outlets display any legal authorisation for excess pricing, whenever applicable, in a conspicuous manner, to uphold consumer rights and transparency.
Appearance
Complainant: Advs. Shrikumar Nambanath & R.Ravichandran
Opposite Parties: Adv. A.D Benny
Cause Title: Lenish V.R V. Managing Director, Kerala State Beverages Corporation Limited
Case No: CC 241/2018
Coram: Sri. C.T. Sabu [President], Smt. Sreeja. S. [Member], Sri. Ram Mohan R [Member]
