Introduction
The Consumer Protection Act protects consumers from traders who charge more than the permitted price for goods. Charging a price higher than the lawful or displayed price is treated as a violation of consumer rights.
A consumer can file a complaint when a trader demands or collects a price that is higher than what is legally allowed or publicly displayed.
Meaning / Definition
Charging excessive price means demanding or collecting a price higher than the permitted price for goods.
A complaint can be made when the trader charges a price higher than:
- the price fixed by law, or
- the price displayed on the goods, or
- the price printed on the package containing the goods.
If none of these prices exist (for example, no legal price and no printed price), then a complaint for excessive pricing cannot normally be made under the Act.
Modes or Types
Charging More Than the Price Fixed by Law
Sometimes the government fixes the price of essential goods under law.
If a trader sells such goods at a higher price than the government-fixed price, it amounts to charging excessive price.
Charging More Than the Price Displayed on Goods
If the price is printed or displayed on the product itself, the trader must sell it at that price.
Charging more than the displayed price is considered excessive pricing.
Charging More Than the Price Printed on the Package
Many goods have the Maximum Retail Price (MRP) printed on the package.
Selling the product at a price higher than the printed price amounts to charging excessive price.
Distinction / Comparison
| Basis | Charging Excessive Price | Lawful Pricing |
|---|---|---|
| Price charged | Higher than legally fixed or displayed price | Same as legally fixed or displayed price |
| Consumer rights | Consumer can file a complaint | No consumer complaint arises |
| Example | Selling milk above government control price | Selling goods at printed MRP |
Practical Example
The government fixes the price of milk at ₹15 per litre for a certain period. A shopkeeper sells the same milk at ₹18 per litre.
Since the price charged is higher than the price fixed by law, the consumer can file a complaint for charging excessive price.
Another example is when a packet of salt shows a price of ₹4 per kg on the package, but the shopkeeper sells it for ₹6 per kg due to shortage in the market. This also amounts to charging excessive price.
Summary
- Charging excessive price occurs when a trader demands more than the allowed price for goods.
- The excess price may be higher than the government-fixed price or the price displayed on the goods or package.
- Consumers have the right to complain when traders charge more than these permitted prices.
- If there is no legally fixed price and no displayed price, a complaint for excessive pricing may not arise under the Act.
- This rule protects consumers from unfair price increases by traders.