Labeling Audit
Under the Legal Metrology (Pre-packaged Commodity) Rules, 2011, it is mandatory for entities selling products in packed form to declare specific information on the packaging. This ensures that consumers are well-informed about the product they are purchasing. The required information includes the name and address of the manufacturer, packer, or importer. In the case of imported items, the label must include the name of the importer, the date of import or packaging, quantity details, and other information as outlined in the rules. The objective of these declarations is to protect consumer rights and ensure they receive value for their money.
What is a Labeling Audit and Why is it Important?
A Labeling Audit is a review process conducted to ensure that the labels on pre-packaged commodities comply with the disclosure requirements outlined under the Legal Metrology (Pre-packaged Commodity) Rules, 2011. Since there is no specific statutory provision that governs the procedure or reporting format for labeling audits, businesses generally conduct these audits as a best practice to avoid penalties and legal consequences resulting from non-compliance.
The audit involves checking and verifying whether the product label carries all mandatory declarations, such as:
- Name and address of the manufacturer/packer/importer
- Common or generic name of the commodity
- Date of manufacture or packaging
- Retail sale price (inclusive of all taxes)
- Consumer care details (such as contact information for complaints)
Statutory Requirement
According to Section 18 of the Legal Metrology Act, 2009, no person is permitted to manufacture, pack, sell, import, distribute, or possess for sale any pre-packaged commodity unless it complies with the prescribed standards and mandatory declarations. These provisions are designed to uphold transparency in the market and safeguard consumer interests.
Consequences of Non-Compliance
Failure to disclose the required information on packaging, as mandated under the Legal Metrology (Pre-packaged Commodity) Rules, 2011, can lead to serious legal consequences, including fines, penalties, and in some cases, imprisonment.
Section 36 of the Legal Metrology Act, 2009 specifies the penalties for offenses related to incorrect or missing declarations on packages. It applies to any person or entity engaged in manufacturing, packing, importing, selling, distributing, delivering, transferring, offering, exposing, or possessing for sale any pre-packaged commodity that does not comply with the required declarations.
The penalties are as follows:
- First Offense: Fine of up to ₹25,000
- Second Offense: Fine of up to ₹50,000
- Subsequent Offenses: Fine not less than ₹50,000, which may extend up to ₹1,00,000, or imprisonment for up to one year, or both
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