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FAQs on Unit Sale Price under Legal Metrology for Packaged Commodity Rules, 2022

• 2022-08-03

As per the new notification released on the 28th of March 2022, the Legal Metrology department declared the effective date on the implementation of Legal Metrology Packaged Commodity Amendment Rules 2021 from October 1st, 2022. The Legal Metrology (Packaged Commodities) Amendment Rules, 2022 will be applicable to pre-packaged commodities packed, manufactured, imported, etc.

As per the Amendment, no prosecution shall be taken against the packer/manufacturer /importer of pre-packaged commodities for making a declaration of Unit Sale Price which is effective from April 1, 2022.

Frequently Asked Questions on Unit Sale Price under Legal Metrology

1. What is the unit sale price?

Ans: Unit sale price states the price (inclusive of all taxes) per unit of measurement as stated in Rule 6 sub-rule (11) of the Legal Metrology Packaged Commodities Amendment Rules, 2022.

“(11) The unit sale price in rupees, set out to the nearest two decimal places, shall be declared on every pre-packaged commodity in the following manner, namely:-

• per gram where net quantity is less than one kilogram and per kilogram where net quantity is more than one kilogram;
• per centimetre where net length is less than one metre and per metre where net length is more than one metre;
• per millilitre where net volume is less than one litre and per litre where net volume is more than one litre;
• per number or unit if any item is sold by number or unit:

Note:

Stated that for packages commodity containing spirituous liquor or alcoholic beverages, the State Excise Laws and the rules made thereunder shall be applicable within the State in which it is manufactured.

Stated that declaration of the unit sale price is not obligatory for the pre-packaged commodities in which retail sale price is equal to the unit sale price.”

2. What should be the manner of declaration of the unit sale price under Legal Metrology?

Ans: The unit sale price shall be declared on the primary display panel of the pre-packaged commodity. It should be confirmed that the unit sale price is unambiguous, simply identifiable and legible to the consumer

Illustration:

For a pre-packaged commodity of Net Qty 200g and MRP including all taxes of ₹60, Unit Sale Price declaration can be specified as given hereinbelow:

• MRP ₹ (incl. of all taxes); USP ₹ 60; ₹ 0.30/g
• MRP ₹ (incl. of all taxes); USP ₹ 60; ₹ 0.30 per g
• MRP ₹ (incl. of all taxes) ₹ 60; USP ₹ 0.30/g
• MRP ₹ (incl. of all taxes) ₹ 60; USP ₹ 0.30 per g
• MRP ₹ (incl. of all taxes) ₹ 60; USP ₹ /g ₹ 0.30
• MRP ₹ (incl. of all taxes) ₹ 60; USP ₹ per g ₹ 0.30

For a pre-packaged commodity of Net Qty 5L and MRP inclusive of all taxes of ₹500, Unit Sale Price declaration can be specified as given hereinbelow:

• MRP ₹ (incl. of all taxes); USP ₹ 500; ₹ 100.00/L
• MRP ₹ (incl. of all taxes); USP ₹ 500; ₹ 100.00 per L
• MRP ₹ (incl. of all taxes) ₹ 500; USP ₹ 100.00/L
• MRP ₹ (incl. of all taxes) ₹ 500; USP ₹ 100.00 per L
• MRP ₹ (incl. of all taxes) ₹ 500; USP ₹ /L ₹ 100.00
• MRP ₹ (incl. of all taxes) ₹ 500; USP ₹ per L ₹ 100.00

3. What is the number of decimal places that require to be specified in the declaration of unit sale price?

Ans: As per Rule 6 and sub-rule 11, the Unit sale price is required to be indicated in rupees, rounded off to the adjacent two decimal places.

Illustration: as declared in response to question no. 2

4. Does one have to follow the spacing requirement for unit sale price declaration?

Ans: The spacing condition under Rule 8 of the LMPC Rules, 2011 is not applicable for the Unit Sale Price declaration.

5. For declaring the Unit Sale Price, what should be the font size?

Ans: Option 1: The Font size for declaring the Unit Sale Price should be at least 50% of the font size of the MRP declaration. For Example, if the height of the numeral for MRP declaration is 4mm then the height of the numeral for Unit Sale Price declaration cannot be less than 2mm.

6. Is Unit Sale Price mandatory to be declared on Wholesale packages?

Ans: Unit sale price is not obligatory to be declared on a ‘Wholesale Package’ as stated in Rule 2(r) of LMPC Rules, 2011.

7. Is unit sale price essential to be displayed on an e-commerce website?

Ans: No, as per Rule 6 sub-rule 10 of the LMPC Rules, 2011, the e-commerce company is required to make sure obligatory declaration as declared in Rule 6 sub-rule 1. Accordingly, the unit sale price is not compulsory to be displayed on e-commerce websites.

8. Is the unit sale price required to be declared in advertisements?

Ans: No, the requirement of the Unit Sale Price declaration is only limited to product labels. Hence, the Unit Sale Price is not obligatory to be declared in advertisements.

9. Is the Unit sale price essential to be declared if it is equal to the MRP?

Ans: As per the 2nd proviso to Rule 6 sub-rule (11) of unit sale price declaration is not required for the pre-packaged commodities where MRP or retail sale price is equal to the unit sale price.

Hence, pre-packaged commodities in which the net quantity/ length is one gram, one meter, one kilogram, one millilitre, one centimetre, one litre and one unit/number shall not be required to state the Unit Sale Price.

10. Is unit sale price required to be stated on packs offering additional volume/units/ quantity for FREE inside the principal pack?

Ans: Yes, the Unit Sale Price needs to be declared, but the Unit Sale Price computation shall eliminate the additional volume/units/ quantity being offered for FREE.

An indicative label declaration is given below

CONTENTS: 10 N (generic name of commodity) + 1 Free

MRP ₹ (incl. of all taxes); USP ₹ 400; ₹ 40.00 /1N + 1N Free

Net Qty: 5 L + 1 L Free

MRP ₹ (incl. of all taxes); USP ₹ 1000; ₹ 200.00/ L + 1L Free

11. Is Unit Sale Price needed to be declared on the inner package, if the outer package consists such declaration required under this LMPC rules, 2011?

Ans: The Unit Sale Price is not needed to be declared on the inner package, however, the outer package must contain all declarations stated under the Rules along with the Unit Sale Price.

12. Is the Unit sale price needed to be declared on packs offering discount/price off?

Ans: Yes, the Unit Sale Price is needed to be declared. Mostly, in such cases, the Unit Sale Price can be calculated by dividing the post-offer MRP (inclusive of all taxes) by the Net Quantity.

An indicative label declaration is given below.

CONTENTS: 10N (generic name of a commodity)

MRP ₹ (incl. of all taxes); ₹ 400 ₹ 360; ₹ 36.00 /1N

13. Is the Unit sale price needed to be declared on packs providing other products for FREE?

Ans: Yes, the Unit Sale Price is needed to be declared on the pack projected for sale, however, the Unit Sale Price computation shall eliminate the value of the product being offered for FREE. It is declared that there is no need of declaring the Unit Sale Price for a Free product.

An indicative label declaration is given below.

Net Qty: 900 ml + 1 N (generic name of a commodity) Free MRP (incl. of all taxes);

USP ₹ 180 ₹ 0.20/ml + 1 N of (generic name of commodity) worth ₹ ___ Free.

14. Is there an exemption for smaller retail packs or pack sizes of lesser value?

Ans: Pre-packaged commodities having a surface area of 100 square centimetres or less OR having MRP of ₹ 35 or less shall not be obligatory to declare Unit Sale Price.

In case of any queries please feel free to connect with our Legal Metrology Professionals. They have years of experience in providing end-to-end consulting services and also assist in obtaining Legal Metrology Registration.