E-commerce companies asked to display MRP from January 1 or pay fines

Ecommerce entities may face financial penalties and even jail term if they do not comply with new rules that require them to mandatorily display the maximum retail price (MRP) among other details on pre-packaged commodities from January 1 next year.

The Legal Metrology (Packaged Commodities) (Amendment) Rules, 2017, seeks to regulate pre-packaged commodities, making declarations about MRP, expiry date, manufacturer's details mandatory in addition to other information about the product. Ecommerce entities have also been brought under the purview of the new rules among rising consumer complaints against them.

"If ecommerce companies do not comply with the new rules, they will be penalised under Section 36 of the Legal Metrology Act," said a senior official of the department of consumer affairs.

According to the Act, ecommerce firms which do not conform to the declarations mandatory for prepackaged commodities will be fined Rs 25,000 for the first offence,Rs 50,000 for the second, and Rs 1 lakh for the third, which may also be coupled with a jail term of up to one year, the official said.

Among other details, sellers on ecommerce platforms will need to display the original MRP of the product even if they are selling it at a discounted price.