Multiplexes use ‘dual MRP’ to trump the rules

While the State government’s decision to mandate multiplexes and cinema halls to sell food and beverages(F&B) at MRP might have been a step in the right direction, it remains to be seen how effective it will be. Almost immediately after the issuance of the orders, multiplexes began formulating new ways to make up for lost revenue.

Several of them have now adopted the practice of having dual MRP for products. For instance, a one-liter bottle mentions an MRP of `20 in the general market, and a higher MRP when sold inside a cinema theatre. This way multiplex authorities can remain in the right as they are, technically, not breaking any rules and are not committing MRP violations. For the customers though, it is back to square one.

It is reported that some multiplexes are selling water bottles at a rate that is 200% higher than their normal MRPs. With no alternatives, customers are forced to shell out the extra money even when they do not want to.

A city-based Twitter user tweeted on Wednesday saying that PVR Cinemas, owner, and operator of many multiplexes in the city, was selling a 500 ml water bottle at `60 at its F&B counters. “They (PVR) sell only this product and not others which costs Rs.20 per liter bottle. Can the government regulate this?” tweeted K Shashi Bhushan.

‘No check on restrictive trade’

Consumer activists, meanwhile, raised voice against restrictive trade practices adopted by the multiplexes.
Akun Sabharwal, Controller of the legal meteorology department said that consumers needed to take up their issues to consumer redressal forums. However, he added that the department could not take direct cognizance in cases of restrictive trade practices.

Source:-http://www.newindianexpress.com/cities/hyderabad/2018/jul/19/multiplexes-use-dual-mrp-to-trump-the-rules-1845371.html

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