In this article, Arjun Radhakrishnan Nair pursuing M.A, in Business Law from NUJS, Kolkata discusses the provisions of Legal Metrology (Packaged Commodities) Rules, 2011.

Introduction

Metrology is the science of weights and measures or of measurement and relates to a system of weights and measures. As per the International Bureau of Weights and Measures the same is define Metrology to include theoretical & practical problems, the realization of the units of measurement and their physical representation as well as measuring instruments & their field of application. Legal Metrology is the name given to all applied metrology subjected to regulations by law or government decree. In India the law relating to the same was initially covered under the Standards of Weights and Measures Act, 1976, but due to the need for a more comprehensive law, the same was replaced by the Legal Metrology Act, 2009 (Hereinafter referred to as “The Act”)which came into effect on 01.04.2011.

The main aim of the act as provided in the long title itself is to establish and enforce standards of weights and measures, regulate trade and commerce in weights, measures and other goods which are sold or distributed by weight, measure or number and any other matter that is connected to the same. Under the Legal Metrology Act, 2009, the Central Government was empowered to make rules in relation to the standard quantities or number and manner in which declarations, as prescribed under the said Act that are necessary to be made on pre-packaged goods, are to be mentioned. For this purpose, The Legal Metrology (Packaged Commodities) Rules, 2011 (hereinafter referred to as “The Rules”) was made and put into effect from 06.06.2013.

Pre-Packed Commodities

Pre-Packaged Commodities have been defined under The Act to mean:

“a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity”

As the definition clearly states, a pre-packaged commodity is packed before the purchaser is present and contains a pre-determined quantity of the goods sought to be sold. In such cases, the purchaser would not be in a position to understand what the product he is purchasing and without proper declarations the purchaser would not receive what he wanted to receive. Due to the same the Legal Metrology Act, 2009 under Section 18 prescribed declarations to be made on pre-packaged commodities. Section 18 Provides the following:

1. No person shall manufacture, pack, sell, import, distribute, deliver, offer, expose or possess for sale any pre-packaged commodity unless such package is in such standard quantities or number and bears thereon such declarations and particulars in such manner as may be prescribed.
2. Any advertisement mentioning the retail sale price of a pre-packaged commodity shall contain a declaration as to the net quantity or number of the commodity contained in the package in such form and manner as may be prescribed.”

The particulars as are required to be declared on the packaging as prescribed in the abovementioned Section are more specifically provided for in the Legal Metrology (Packaged Commodities) Rules, 2011.

All forms of business or persons who are pre-packing goods are required to get registration of their name and complete address along with a fee of Rs. 500 to the Director of Controller.  All applications must contain the name, the address and the commodities that are pre-packed by the person or business. If all the particulars are provided, then the registration is granted within 7 days of the application.

Applicability of the Legal Metrology (Packaged Commodities) Rules, 2011

As per Chapter II of the Rules, the provisions of the said Chapter are applicable to packages intended for retail sale. Retail Sale has been specifically defined under the Rules and given a very wide ambit whereby it has been held to mean sale distribution or delivery through retail sale shops, agencies or any other mode of business to any individual or a group of individuals. Further under Rule 5, the commodities specified in the Second Schedule are to be packed for sale, distribution or delivery in the standard quantities as mentioned in the said schedule.

Even though the Rules give a wide ambit to the products that are required to be packed ad sold under retail sale certain exemptions to the applicability of the Rules have also been culled out. Under Rule 3 of the Rules, the exclusions from the scope of the said Chapter has been provided as follows:

• Packages of commodities containing quantity of more than 25 Kg of 25 Litre excluding cement and fertilizer sild in bags up to 50 Kg; and
• Packaged commodities meant for industrial consumers or institutional consumers.

The said definition places a restriction of the quantity of goods for which the said Chapter would as the primary purpose of the said Rules is to ensure that the proper declarations are made on the retail sale of products that are sold to the general public. In the case of Eureka Forbes Limited vs. Union of India & Others an unreported case arising out of Writ Petition No. 6547/1997 decided on 07.02.2003 by the High Court of Andhra Pradesh, held that in the case of vaccum cleaners, the outer box is not a package, and in many cases the machines in question are taken out of the package and tested before purchase. In such a situation the purchaser is aware of what he is purchasing and therefore it cannot be said he is purchasing a pre-packaged commodity. Products which may be unpackaged prior to sale for the purpose of demonstration cannot be said to be falling under the ambit of the definition of pre-packaged commodity.

Further the said rule also excludes industrial and institutional consumers who are defined under Rule 2 to mean consumers who directly deal with the manufacturer to obtain the product, and where the products are not obtained by way of retail sale in any manner or form.

General Exemptions to the said rules are also provided under Chapter V of the said Rules, wherein under Rule 26 it provides that :

“Nothing contained in these rules shall apply to any package containing a commodity if-

• The net weight or measure of the commodity is ten gram or ten milliliter or less, if sold by weight or masure
• Any package containing fast food items packed by restaurant or hotel and the like;
• It contains scheduled formulation and non-scheduled formulations covered undere the Drugs (Price Control) Order, 1995 made under Section 3 of the Essential Commodities Act, 1955;
• Agricultural farm produces in packages of above 50 kg.”

Declarations to be made on Pre-Packaged Commodities

The main purpose of the said Rules are to ensure that certain declarations as provided under Section 18 of the Act are made on the pre-packaged goods. Rule 6 prescribes the declarations that are to be made on each of the packages. As per rule 6 the following declarations are required to be made:

1. The name and address of the manufacturer

The name and address of the manufacturer and where there is a packer, the name and address of the packer and in case the goods are imported the name and address of the importer. It is clarified vide explanation that where multiple names and address are mentioned the name and address of the deemed manufacturer shall be taken for the purpose of launching prosecution and taking any other action. Further it is explained that where packages contain foods articles the provisions of this sub-rule will not apply and instead the provisions of the Food Safety & Standards Act, 2006 and the rules  made under the said Act shall apply. ‘

In cases where the packages are of 5 cubic cm or less, then even mark or inscription that would enable the customers to identify the manufacturer would be sufficient for compliance with the said declaration. Further it is provided under Rule 10 that the complete address ought to be provided including the postal code which would enable the customer to identify to a great degree where the office of the manufacturer is. Further it has been clarified that the address of the manufacturer or the packer or importer does not specifically have to be that of the factory premises, but can also be the registered office of the said concern. This would ensure uniformity in the declarations made on the packages and separate factory or premises address need not be mentioned on products made in different places.

This is also to be mentioned in the case of wholesale packages as provided under Chapter III, Rule 24.

2. The common and generic name of the goods

The manufacturer or packer or importer shall also mentioned the common or generic name of the goods or the name that is prevalent and used in trade circles. In the case where there are multiple goods in the package the common and generic names of each such item and the quantity of each such item in the package.

This is also to be mentioned in the case of wholesale packages as provided under Chapter III, Rule 24.

3. Quantity of the commodity

Where the commodity is measured in some unit of weight or measure the net quantity should be declared in the said unit of weight or measure and where it is mentioned in numbers, the number of the said goods in the package should be mentioned. It is provided under Rule 11 that the weight of the wrappers and materials other than the commodity itself shall be excluded from the total weight. Further it is necessary that the quantity as mentioned on the packaging is what the customer receives. Where there is chance that the quantity that is received by the customer may differ due to the any environmental or other factors then it must be ensured that the quantity even if there is loss shall not be less than the net quantity as mentioned on the package. Except for goods specifically mentioned in the Third Schedule as being of a certain quantity when packed, it is a must that the quantity of the commodity in the package must correspond to the quantity mentioned on the package.

This is also to be mentioned in the case of wholesale packages as provided under Chapter III, Rule 24.

4. The month and year in which the commodity is manufactured, pre-packed or imported

The month and year of manufacture, packaging or import must be mentioned on all the packages unless otherwise provided. It is once again specified that in case of food articles Food Safety & Standards Act, 2006 and in the case of seeds the Seeds Act, 1966 or rules thereunder shall apply. Further packages of bidi or incense sticks and cylinders of domestic liquefied petroleum of 14.2 Kg or 5 Kg, bottled and marketed by public sector undertaking are exempted from the said declarations regarding month and year.

5. The retail sale price of the package

The retail sale price has to be mentioned, and the same shall be inclusive of all taxes and levies that are liable to be paid.

6. Dimensions of the commodity

This aspect comes into play where the size of the commodity is relevant. In such cases the dimensions of the commodity and in case there are multiple such commodities the dimensions of each such piece shall be mentioned.

7. Provision for Consumer Complaints

The packages must contain the details such as address, telephone number, email address for purpose of consumer complaints.

8. Any other declarations as may be required in view of the product

The Rules also provide that any other declaration as may be relevant to them matter must be placed on the packaging. For example the words “GM” in the principal display panel where the commodity is genetically modified must be shown. In the case of products such as napkins which have a number of usable sheets in the packing, the packing must clearly specify that the package contains a particular number of sheets. Under rule 17 specific situations are provided such in the case of large bags, containers of various shapes, and the nature of containers to define the declarations that may be required for the same.

Manner of Declarations

In addition to making the abovementioned declarations, it is important, that the person liable to make such declaration must also declare in the manner as prescribed in the said Rules. For the purpose of understanding the manner, it is also necessary to know the meaning of principal display panel. This has been defined to mean the total surface area in relation to the package where all the information and declarations as required under the Rules are to be grouped together and given preferably in one place. As per Rule 7, where the package has a capacity of 5 cubic cm or less the principal display can be in the form of a card of tape affixed to the package that bears the necessary information. The height of the numerals as required by the principal display panel shall not be less than :

1. In the case of where net quantity is declared in terms of weight and volume
2. In cases where the net quantity is declared in terms of length, area or number

Thus in both cases the minimum height is 1 mm and in the case of blown, formed, molded embossed or perforated on container it must be 2mm. The width of the letters shall not be less than 1/3^rd of the height except in case of the number “1” or letters such as “I”.

In addition it is provided under Rule 9 that every declaration made under these rules must be legible and prominent, and the numerals of the retail sale price and net quantity declaration shall be printed, painted or inscribed in the package in a color that is contrasts conspicuously with the background label. This is not required in the case where details are the case of blown, formed, molded embossed or perforated on container. The Rules also mention that in the case of packages which have an outer layer covering, the declarations as required shall be placed on the outer cover as well. This is not required where the outer covering allows for the inner cover and the declarations on the same to be visible.

Rule 12 provides for the manner in which quantities are to be declared. As per the said Rule, in cases other than ones mentioned in the 4^th Schedule to the said Rules, the declaration of quantity shall be in the terms of units as specified herein:

• Mass, if the commodity is solid, semi-solid, viscous or a mixture of solid and liquid;
• Length, if the commodity is sold by linear measure;
• Area, if the commodity is sold by area measure;
• Volume, if the commodity is liquid or is sold by cubic measure; or
• Number, if the commodity is sold by number.

Where the declarations made in relation to the quantity is not sufficient to impart the complete information with regard to the product, declarations regarding the dimensions and the number of packages or any other declaration as may be necessary may be provided. Any other declaration shall also be placed along with the declarations as made regarding the quantity. In the case of packages having less than 5 cubic cm of surface area, the declaration shall be made on a sticker or a tape and shall be placed in such a manner so as to ensure that the same needs to be removed at the time of opening the container.

Further when expressing quantity as units of weight measure or number, the same shall be expressed in he following manner where the quantity is less than:

• One kilogram, the unit of weight shall be the gram;
• One metre, the unit of length shall be the centimetre;
• One square metre, the unit of area shall be the square decimetre;
• One cubic metre, the unit of volume shall be one cubic centimetre;
• One cubic decimetre, the unit of volume shall be the cubic centimetre;
• One litre, the unit of volume shall be the millilitre.

In cases where the quantity is greater than the same shall be expressed in the larger form and where there is extra weight the same shall be determined in the form of decimal points. But it is also left to the manufacturer or packer to mention the smaller unit of measurement where they wish to do so.

Errors in Packaging and Inspection

Under Rule 19 read with Section 15 of the Act, the Director, Comptroller or Legal Metrology Officer, may examine the packages and carry out tests and draw samples of the same to ensure that there are not too many errors in relation to the declarations that were to be made on the packages. This shall be done in terms of the maximum permissible error as provided under Rule 22 and the 1^st Schedule. When determining the maximum permissible error care shall be taken to account for errors caused due to deviation in weighing, measuring and counting, deficiency due to climate, transport storage etc, and due to the nature of the packing material. Where it appears that the average net quantity is less than what is declared in the packages or where any deficiency is greater than the maximum permissible amount, then the proper officer may allow for the person to take fresh samples on the payment of Rs. 2,000/-. Where it is found by the proper officer that no discrepancies exist then the officer may allow the goods to be sold. Otherwise, the goods would have to be repacked and proper declarations would be required to be placed on the same. In case further action is required, the officers may seize 5 samples and release the remaining so that the same may be sold after complying with any other changes to the packaging and declarations as required. Once inspection is completed the samples may be discarded as per the provisions of the CRPC. As per Rule 21, where it is ascertained that packages do not ascribe to the declaration as made with regard to the quantity, the officer shall seize the same. But where the packages bear the legend “when packed” then the officer may take into consideration environmental factors to see whether there was any proper reason for the decrease in quantity. As per Rule 23 all deceptive packages are to be seized and the manufacturer or packer shall be liable to re-pack or re-label the goods. Deceptive packaging is a case where the consumers are misled by the packaging but does not include a case where bigger dimensions are necessary for proper packaging of the commodity.

Rule 32 provides for penalty by way of fine of Rs. 4,000/- for contravention of provisions in Rule 27 to 31. Where no provision for punishment is provided the penalty shall be Rs. 2,000/-.

Every decision or order of an officer of Legal Metrology will be appealable to the next higher authority within 60 days of passing the order or decision. The Central or the State Government may call for records from its officer for examination and passing appropriate orders.

Conclusion

The Legal Metrology (Packaged Commodities) Rules, 2011 aims to ensure that the process of making declarations on pre-packaged goods is achieved in an easy manner. Even though the rules seem strict, it provides the basic parameters that are required for the purpose and manner of making declarations. The rules are specific with the requirements and as to what comes under it ambit and the exclusions to the same. Further the rule has considered many different possibilities and provided for the same. But while, the declarations and manner in which declarations are to be made are provided in depth, the penal provisions for failure to do so are rather lax. This would be the biggest weakness of the rules, as the punishments and procedure in case of incorrect declarations are not heavy and for larger companies the same are at best a mild annoyance. The major reason for the same could also be to ensure that the officer appointed under the Act for the purpose of enforcing the Act and the Rules are not powerful enough under the Act to hold companies for ransom where oversight is lax.

The Legal Metrology (Packaged Commodities) Rules, 2011 plays a major role in ensuring that the consumers are aware of what they are purchasing and are not cheated by unscrupulous manufacturers. The Act and Rules therefore serve a great purpose in the society by allowing the purchasers to have greater information into what they are purchasing and where there is an issue with the purchase also tries to provide an avenue for complaints. The said rules are part of the beneficial legislation passed along with the Legal Metrology Act, 2009 to provide an easy and modern set of rules for ensuring the protection of purchasers.