Legal Question in Consumer Law in India

non compliance of pricing policy proposed by the manufacturer, by the wholesaler

a company has a pricing policy to sell the goods to its wholesalers and retailers who observe minimum retail price suggested by the manufacturer. however a large number of retailers advertised the companys items below MRP

in therefore to compliance with it sprice policy it inform sit swholesalers and retailers that it would refuse to sell to those who did not observe MRP.even so several retailers continued to sell at discount. so the company stopped its fullfill the orders. the retailers found this a restriction to their right to trade and filed a suit.

HENCE FORTH UR DECISION FROM DEFENDANTS POINT OF VIEW


Asked on 8/27/03, 2:25 pm

1 Answer from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Re: non compliance of pricing policy proposed by the manufacturer, by the wholes

MRP - Maximum Retail Price - as the very nomenclature suggests is the maximum amount which can be charged to a customer. The law in this behalf imposes condition/restriction to charge anything above such MRP. Conversely, there are no restrictions to charge less than MRP. However, in a particular case, if a group of Wholesalers and/or Retailers are selling a product at a discounted price with some malafide intentions, then a manufacturer can take resort under other laws for such an act or omission.

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Answered on 8/30/03, 2:05 am


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