Compliances for e-commerce entities under Legal Metrology Act, 2009

What is the Legal Metrology Act, 2009?

The Legal Metrology Act establishes and enforces standards of information to be shared on an e-commerce platform and the packaging of products. Such standards ensure that the buyer makes a fully informed decision while making the purchase, and the Act is therefore applicable to all e-commerce entities in respect of any goods, class of goods or undertakings regarding weight, measure or number.

Information that Must be Clearly Displayed

1. Details regarding the manufacturer, such as name and address of the manufacturer.
2. Country of origin on the product page.
3. Consumer care email ID and phone number should also be mentioned on the website.
4. Terms of shipping and return/refund policy.
5. An export package shall not be sold in India unless the manufacturer or packer has re-packed or relabeled the commodity.
6. An e-commerce entity shall mention the maximum retail price of the package inclusive of all taxes in Indian currency.

With respect to packaged commodities, every unit of weight or measure shall be in accordance with the metric system based on the international system of units: length (metre), mass (kilogram), time (second), electric current (ampere), thermodynamic temperature (kelvin), luminous intensity (candela) and amount of substance (mole).

As per the Legal Metrology Act, all individuals, firms, societies, companies or corporations who (a) pre-pack or import any commodity for sale, or (b) distribute or deliver any commodity, are required to obtain registration. However, manufacturers of the following are exempt from such registration: (a) packages of commodities containing a quantity of more than 25 kilogram or 25 litre; (b) cement, fertiliser and agricultural farm produce sold in bags above 50 kilogram; and (c) packaged commodities meant for industrial or institutional consumers.

Important Declarations on a Package

As per the Packaged Commodities Rules, every package should carry the following declarations:

1. Name and address of the manufacturer, or where the manufacturer is not the packer, the name and address of the manufacturer and packer. In case of an imported package, the name and address of the importer and the name of the country of origin, manufacture or assembly should be mentioned.
2. Common or generic names of the commodity contained in the package. Where the package has more than one product, the name and number or quantity of each product should be mentioned.
3. Net quantity of the commodity contained in the package, in terms of the standard unit of weight or measure, and the number of commodities contained where the commodity is packed or sold by number.
4. Month and year in which the commodity is manufactured, pre-packed or imported. With effect from 1st April 2022, only the month and year in which the commodity is manufactured is required to be mentioned. A package containing a commodity which may become unfit for human consumption after a period of time should mention the "best before or use by" date, month and year. Packages containing food articles, cosmetics and seeds are governed by the Prevention of Food Adulteration Act, 1954, the Drugs and Cosmetics Rules, 1945 and the Seeds Act, 1966 respectively.
5. The retail sale price of the package, clearly indicating that it is the maximum retail price inclusive of all taxes, rounded off to the nearest rupee or 50 paise. In the case of alcoholic beverages or spirituous liquor, the applicable state excise laws and rules govern; where they do not provide for declaration of retail sale price, the Packaged Commodities Rules apply. If the retail sale price of an essential commodity is fixed and notified under the Essential Commodities Act, 1955, the same shall apply.
6. Where the size of the commodity is relevant, the package should mention its dimensions. Where the dimensions of different pieces are different, the dimensions of each piece should be mentioned.
7. Name, address, telephone number and e-mail address of the person or officer who can be contacted in case of consumer complaints.

The aforementioned list is not exhaustive, and there are several other compliances which have not been mentioned here for the sake of brevity.

Offences and Penalties

If an e-commerce entity does not follow the aforementioned points, a fine of up to Rs. 50,000 can be imposed on such entity. A penalty for quoting or publishing non-standard units is punishable with a fine of Rs. 10,000. Subsequent offences may result in imprisonment which may extend to 1 year, along with a fine.

Penalty for transactions in contravention of standard weight or measure – whether by selling less than the quantity contracted for, rendering a service less than that contracted for, or fraudulently receiving more than the quantity contracted for – shall be punished with a fine of up to Rs. 10,000. Any subsequent offence may result in imprisonment which may extend to 1 year, along with a fine.

Disclaimer: The content of this article is intended to provide general guidance on the subject matter. Specialist advice should be sought about your specific circumstances.