
The Chandigarh Consumer Court held that restaurants cannot charge more than the Maximum Retail Price (MRP) for pre-packaged items like bottled water. It clarified that MRP already includes taxes and profit, and no extra amount can be added.
Very recently, a customer went to Ghazal Restaurant in Chandigarh, where she was charged ₹55 for a sealed bottle of “Aquafina” water, even though the MRP printed on the bottle was only ₹20. Furthermore, the restaurant added GST to the inflated price of ₹55, even though the MRP already includes all taxes. She was disappointed and filed a complaint against the restaurant, which was first dismissed by the District Consumer Commission, but she did not give up and filed an appeal before the Chandigarh State Consumer Commission.
The restaurant admitted that it charged ₹55 for a bottle of water. However, it argued that Ghazal is a well-known and respected restaurant that offers a premium atmosphere, comfort, and quality service. According to the restaurant, customers pay for the overall dining experience and not just for the product itself, so charging more was not an unfair trade practice.
The State Commission disagreed. It explained that under the Legal Metrology (Packaged Commodities) Rules, 2011, the Maximum Retail Price (MRP) is the highest price at which a packaged product can be sold, and it already includes all taxes. The Commission clarified that when a restaurant sells a packaged item, it acts as a retailer, even if the sale happens inside the restaurant. While restaurants are free to decide the prices of the food they prepare, they cannot charge more than the MRP for packaged goods. Holding Ghazal Restaurant guilty of unfair trade practice, the Commission ordered it to refund ₹25 charged above the MRP and to pay ₹3,000 as compensation to the complainant.
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