Shop charges Rs 7 above MRP for water bottle, ordered to pay Rs 7 lakh in damages

The complainant alleged that he was charged Rs 25 for a one-litre packaged drinking water bottle having a maximum retail price (MRP) of Rs 18.

A consumer commission in Andhra Pradesh recently directed a shop to pay Rs 7 lakh in punitive damages after it allegedly charged a customer Rs 25 for a one-litre packaged drinking water bottle having a maximum retail price (MRP) of Rs 18.

President Ch Raghupathy Vasantha Kumar and members Chakka Susi and Chaganti Nageswara Rao also directed the shop to refund the Rs 7 excess amount, pay Rs 10,000 as compensation and Rs 5,000 towards litigation costs. The Rs 7 lakh punitive damages were directed to be deposited with the Consumer Welfare Fund.

“Considering the gravity of the unfair trade practice, the likelihood of recurrence, the large number of consumers affected, the necessity of protecting public interest, and in exercise of the powers conferred under…Consumer Protection Act, 2019, this Commission directs the 2nd opposite party (shop) to pay punitive damages of Rs 7 lakh, which shall be credited to the Consumer Welfare Fund,” the order read.

The complainant stated that he was visiting a temple when he purchased a one-litre packaged drinking water bottle from a shop on the temple premises. Though the bottle carried an MRP of Rs 18, he was allegedly charged Rs 25. When he questioned the shop operator, he was allegedly told that the shop was authorised to sell the bottle above the MRP.

Alleging unfair trade practice and deficiency in service, the complainant moved consumer commission.

The shop operator denied the allegation and claimed that the Rs 25 payment related to a cool drink priced at Rs 20 and a biscuit packet priced at Rs 5, and not to the water bottle. It also claimed that drinking water was supplied free of cost at several locations in the temple premises.

The temple’s executive officer, who was arrayed as the first opposite party, denied liability and said the shop was independently operated by a licensee. The administration also placed on record notices and proceedings initiated against the shop operator over earlier complaints of overcharging.

The commission found the complainant’s version supported by the payment record, photographs of the water bottle showing the MRP and video recordings. It noted that the shop operator had not produced electronic billing records or CCTV footage to support its claim that the payment was for a cool drink and biscuits.

The commission noted that the sale took place at a temple which is one of the most frequented pilgrimage centres in Andhra Pradesh, where thousands of devotees visit every day. “Consumers at such places are often constrained by time, availability of alternative vendors, and the urgency of their needs. Such consumers are in a vulnerable position and are compelled to purchase essential articles at the price demanded,” it noted.

The commission observed that charging more than the MRP amounts to a deliberate commercial practice intended to derive unlawful gain at the expense of unsuspecting consumers. It noted that mere refund of the excess amount or award of nominal compensation would not achieve the object of the Consumer Protection Act.

It therefore imposed Rs 7 lakh in punitive damages, saying a substantial amount was necessary to ensure that unfair trade practices did not become economically profitable and to deter their recurrence.

At the same time, the commission dismissed the complaint against the temple’s executive officer, holding that there was no evidence that the temple administration had instructed, encouraged or authorised the shop to charge above the MRP.

Charging even a small amount above the printed MRP can amount to an unfair trade practice and deficiency in service, and consumer forums can impose punitive damages where such overcharging risks affecting a larger body of consumers.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Andhra Pradesh: 0866–2551431) or call the National Consumer Helpline at 1915 for assistance.

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