Consumers can bargain below Maximum Retail Price (MRP).

Question

Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R).

Assertion (A): Consumers can bargain below Maximum Retail Price (MRP).

Reason (R): MRP is a price a seller must charge from the buyer.

Select the correct answer from the code given below:

1. A. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
2. B. (A) is false, but (R) is true
3. C. (A) is true, but (R) is false (Correct answer)
4. D. Both (A) and (R) are true and (R) is the correct explanation of (A)

Correct Answer

Option C — (A) is true, but (R) is false

Detailed Solution & Explanation

The correct answer is (A) is true, but (R) is false.

Key Points

• Assertion is true. Consumers can bargain below the Maximum Retail Price. The MRP is a ceiling, and nothing prevents a seller from selling below it — discounts and sales are exactly that.
• Reason is false. The MRP is not a price the seller must charge. It is the maximum price that may be charged, inclusive of all taxes. Charging above MRP is an offence; charging below it is perfectly legal.
• (A) true and (R) false gives option (c).

Additional Information

• MRP is mandated in India by the Legal Metrology Act, 2009 and the Legal Metrology (Packaged Commodities) Rules, 2011, which require every pre-packaged commodity to declare the MRP inclusive of all taxes.
• Consumer rights under the Consumer Protection Act, 2019 are frequently asked: the right to safety, to be informed, to choose, to be heard, to seek redressal and to consumer education.
• The 2019 Act created the Central Consumer Protection Authority (CCPA), introduced product liability, covered e-commerce and misleading advertisements, and provided for mediation.
• Its three-tier redressal machinery: District Commission (up to ₹50 lakh), State Commission (₹50 lakh to ₹2 crore) and National Commission (above ₹2 crore).
• 15 March is World Consumer Rights Day; 24 December is National Consumer Rights Day in India, marking the assent to the original 1986 Act.