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If you are willing to change in Labelling Information or prices on the product labelling then you have to follow a process and rules. In India, the product Labelling Information is governed under the Legal Metrology Act, 2009, Legal Metrology Packed Commodity Rules (LMPCR), 2011. The LMPCR is a consumer law that works for the protection of consumers. Any industry dealing with Pre-Packaged Commodities must adhere to the requirements of Labeling Laws prevailing in India. For detailed coverage on Package Labeling Laws please check “Product Labelling Consultations”.
What Is Product Labelling?
Product labeling means displaying information about your products on their packaging. The labelling of the product doesn’t contain only the brand name and its items. But it also contains the information that is necessary for the customers. This will help the product to influence the customers and its buying decision.
Why Product Labelling Is Important For Branding?
Product labelling is very vital for the brand and its work as a main component for branding.. This will help to represent the product in front of consumers and spread awareness about the product. The product label makes your product more desirable to the public and increases interest. With an attractive labelling you can increase the visibility of the product and build customer trust. If you create a memorable design of your product then it becomes easy for the audience to get familiar with it. This will create the trust between you and your customers.
- Identification For Audience - WIth the help of a catchy product label you can simply create identification for a nameless item. The label helps the consumer to differentiate the product item uses, and specialty, from other items.
- Description About Product - A label of the product describes the item size, ingredients, instructions, how you can consume it, etc. All this information gives life to the product and becomes more trustworthy for the consumer at the same time.
- Helps in Product Comparison - Product labelling helps the consumer to compare one item to another to purchase the best one.
- Helps In Marketing - Labelling of the product helps in grabbing the attention of the customer and exact details about the product. When you combine the design of packaging it helps in increasing the number of new buyers.
- Protects the Consumer from getting CHEATED - Labels protect the consumer from buying weird or duplicated products in the market. It creates your individual identity in the market for consumers.
- Provide information according to the law - On the label the manufacturer has to mention the details according to the law and rules according to the LMPC guidelines. If you change In Labelling Information in thenr you have to inform the consumer about this.
What is the Need for Change in Labelling Information?
It is a common possibility that any business entity may have printed the packages subsequently the pre-printed information may have changed. There can be many reasons for the same:
- Change in prices of the raw material
- Change in taxes – GST, Custom Duty or other local taxes
- Change in Manufacturer Address
- Change in Correspondence Details of Manufacturer
- Merger / Demerger of Business entity
- Misprinting of any information
- Approval of Single brand retail trading entities
For Change In Labelling Information you have to follow the basic process & work according to the guidelines. WIthout following the guidelines you are not allowed to change the prices of the products if the prices are increasing.
What is the Legal solution for change in Pre-Printed Labelling Information?
Under the LMPCR, 2011, under Rule 33 the Central Government has the power to relax one or more provisions of the LMPCR. The text of Rule 33 is reproduced herein below: –
The Central Government may, after ascertaining the genuineness, permit a manufacturer or packer to pack for sale the packages for a reasonable period by relaxing one or more provisions of these rules with such corrective measures as may be specified.
The Central Government may, after ascertaining the genuineness of a case stated in the application permit a manufacturer or packer or importer to pack or sell of the packages other than specified in the Second Schedule for a maximum period of one year by relaxing the rules.
What is the Legal Procedure to Change MRP On Product Labelling?
The legal procedure to change the prices or MRP of the product is dependent on multiple factors including your location. The factors are as follows:-
- Your Location - The specific regulations and procedures depend on the location. The rule and the process vary according to the area. If you are a citizen of Delhi, India then you have to follow the central rules to work according to the government to specify the MRP of your products.
- Reason to Change MRP - You have to change the RP of the product due to such reasons change in tax, an increase in manufacturing cost, & other issues.
- Generally the increase in prices of MPR is quite complex compared to a decrease in prices.
Steps to Change Labelling Information MRP Of Products
To Change In Labelling Information of the product and package you must need to understand about the basic steps according to the mentioned Information:-
- Application - Apply to the Department of Consumer Affairs, Ministry of Consumer Affairs, Food & Public Distribution, Government of India.
- Justification - Identify the reason for the increase in prices and also include supporting documents such as cost increase calculation.
- Approval - The government will review your application and grant the approval if they are satisfied.
- Newspaper Advertisement Update - Update your consumer about the prices change in publishing news in any 2 newspapers.
- Inform Authority - Intimate about the price change of the product to Director Legal Metrology and Controllers of Legal Metrology in your state.
- Labelling - Once the process is approved by the authority update the MRP on the label of the product for consumer awareness.
General Information Regarding MRP Change
- You do not need any kind of government approval when the prices of the product is decreasing. You only have to inform the relevant authorities and update the product labeling
- Follow the specific rules regarding MRP changes due to GST adjustments.
- We will recommend you to consult with the legal professional specializing in consumer protection laws for the updated and accurate information.
What is the Legal Way To Change MRP On Package Product Label?
When it comes to revising the MRP on a product’s packaging, the government regulations are highly strict. We have seen numerous brand owners modify the MRP of a product by affixing a new MRP sticker over and above the pre-printed MRP, which is plainly prohibited in India. To update the MRP on a product’s package, you must file an application with the Central Government’s Department of Consumer Affairs, which is overseen by the Ministry of Consumer Affairs, Food and Public Distribution in Delhi.
Only when there is a solid justification and the appropriate authority is satisfied with the grounds offered by you will the Central Government grant clearance to amend the MRP. Obtaining clearance for a change in MRP is a difficult undertaking; normally, the government will provide approval for a change only when there is a change in pricing owing to a change in taxes.
The following stages may be included in the approval procedure for a change in MRP: –
- Creating a thorough representation as well as supporting papers.
- Reply to above deficiencies, If the Central Government is satisfied, authorization will be granted.
- The Central Government has issued a response to the deficiencies / Show Cause Notice.
- Submission of a representation to the Central Government.