NLSIU students win the case against Pepsi

Five NLSIU (National Law School of India University, Bangalore) students have won their case against Pepsi Co in the Consumer Forum. The consumer complaint had been filed against the practice of marking higher MRPs (Maximum Retail Price) by Pepsi for sale in some channels. The Forum has held that this differential pricing amounts to unfair practice..Five NLSIU (National Law School of India University, Bangalore) students have won their case against Pepsi Co in the Consumer Forum. The consumer complaint had been filed against the practice of marking higher MRPs (Maximum Retail Price) by Pepsi for sale in some channels. The Forum has held that this differential pricing amounts to unfair practice..The consumer complaint was filed by NLSIU students on behalf of the Ministry of Consumer Affairs Chair on Consumer Law & Practice (presently held by Prof. Ashok Patil) in association with the Legal Services Clinic of NLSIU..The Consumer forum in its order dated April 1, 2011 held, “These printing different rent MRPs for the same material without any change in the material either in the contents or in the quantity is nothing but an unfair trade practice and selling it to the consumers is really unfair trade practice and also deficiency in service. This has to be curtailed. How can the same material have a different M.R.P. at different places? There is no answer. If the retailer wants to sell it for a higher price, it is his business and he has to satisfy the customers that he is selling it at a particular price in case customers wants to take it they may take, if they may not take or they may reject it, but the manufacturer cannot print different prices for the same commodity, it is nothing but an unfair trade practice”..“As the prints different M.R.P. will allow the retailer to gain more profit for the same material which is impermissible in law. The complainants are the customers. The material purchased at a particular place has a particular M.R.P. the same material must have the same M.RP. at different places also. It cannot have two different M.R.Ps. Hence, printing different M.R.Ps is bad in law, is unfair trade practice”..Speaking to Bar & Bench NLSIU student and one of the complainant, Ashwini Obulesh said, “Although the Court was initially reluctant to pass an order against an MNC owing to difficulties in execution proceedings, we are glad that the order for ceasing the unfair trade practices was finally passed. This should set an example for consumers to fight back when they are being cheated”..The Forum has directed Pepsi to stop printing differential MRPs on same quantities of products. The Forum further directed Pepsi to give the students Rs. 5000 as compensation and Rs. 2000 towards cost of this litigation.