Restaurants Cannot Charge Above MRP For Packaged Water: Chandigarh State Commission
The State Consumer Disputes Redressal Commission, Chandigarh, presided over by Mrs. Padma Pandey, Presiding Member, along with Preetinder Singh, Member, while setting aside the order of the District Consumer Commission, Chandigarh, held that restaurants cannot charge more than the Maximum Retail Price (MRP) for pre-packed products. The Commission observed that the MRP is the...
The State Consumer Disputes Redressal Commission, Chandigarh, presided over by Mrs. Padma Pandey, Presiding Member, along with Preetinder Singh, Member, while setting aside the order of the District Consumer Commission, Chandigarh, held that restaurants cannot charge more than the Maximum Retail Price (MRP) for pre-packed products. The Commission observed that the MRP is the highest price at which a product can be sold to the end consumer and that it includes all taxes, packaging costs, and the retailer's profit margin.
The bench further held that selling a sealed water bottle above its MRP amounts to unfair trade practices, even if the sale takes place inside a restaurant providing premium ambience to the customers.
Facts of the Case
Ishita Khanna (Complainant), had visited a restaurant in Chandigarh, namely “Ghazal Restaurant” (Opposite Party), where the restaurant charged her Rs.55/- for a sealed Aquafina water bottle even thought the MRP printed on the bottle was Rs.20/-. To add on to this, the restaurant further levied GST on the inflated price of Rs.55/-, despite the fact that MRP already includes all taxes.
Aggrieved by all this, Ishita filed a complaint before the District Consumer Commission Chandigarh, however the same was dismissed as being devoid of merits. Thereafter, the complainant filed an appeal before the State Consumer Commission.
Arguments of the Restaurant
The Restaurant admitted the fact that they charged Rs.55/- for the sealed water bottle, but they justified the same by arguing that the restaurant namely Ghazal was one of the oldest and well-known in the city offering premium ambience, comfort and quality services. They contended that the customers do not merely pay for the food or water but for the overall dining experience. As per their arguments, there was no deficiency of service or unfair trade practice on their part.
Decision
The State Commission while allowing the appeal observed that as per the Legal Metrology (Packed Commodity) Rules 2011, MRP is the highest price at which any packed commodity can be sold and it is inclusive of all taxes. No restaurant or retailer can charge more than this price. It further observed that when a restaurant sells a pre-packed commodity, it acts as a retailer, irrespective of the fact that the sale takes place inside a restaurant.
The bench clearly distinguished that the food and beverages prepared by the restaurants can be priced freely but pre-packed commodities cannot be charged more than the MRP since MRP is the “statutory ceiling, inclusive of all taxes”.
As a result, the Chandigarh State Commission held “Ghazal Restaurant” liable for unfair trade practices and directed them to refund the excess amount of Rs.25/- charged above MRP along with Rs.3000/- compensation to the Complainant.
Case Title: Ishita Khanna vs. Ghazal Restaurant
Appeal Number: A/142/2025