Recently I had a rub in with Legal Metrology Department of one of the state units in India. We received couple of warning letters and upon discussion they explained to us the unintentional mistakes we do due to non-awareness of the Legal Metrology Ecommerce compliance rules and so I thought it would be a good idea to share my learnings from the same here for my fellow D2C brand owners and ecommerce businesses to avoid such issues.
Legal metrology plays a crucial role in achieving this by regulating the packaging, labeling, and selling of pre-packaged commodities. E-commerce businesses dealing in such products must adhere to the Legal Metrology (Packaged Commodities) Rules, 2011, formulated under the Legal Metrology Act, 2009.
Understanding Legal Metrology for E-Commerce
The core objective of legal metrology in e-commerce is to empower consumers with accurate information, enabling them to make informed purchase decisions. This is achieved through regulations regarding:
- Mandatory Declarations: E-commerce platforms must ensure product descriptions and labels clearly display all mandatory declarations as per the rules. This includes information like the common or generic name of the product, net quantity (in appropriate units), name and address of the manufacturer/packer/importer, customer care contact details, and batch code/lot number.
- Correct Measurement Units: The net quantity of a product must be declared in the units specified by the Legal Metrology (Packaged Commodities) Rules. This ensures consistency and prevents confusion for consumers comparing products. For example, weight should be displayed in grams or kilograms, and volume in milliliters or liters and length in meters or cms or mm and not feets or inches.
- MRP and Inclusive Taxes: The Maximum Retail Price (MRP) is a crucial aspect of legal metrology compliance. E-commerce platforms must display the MRP clearly and ensure it’s inclusive of all taxes (inclusive of GST). This protects consumers from hidden charges and facilitates price comparison across different platforms.
- Specific Requirements for Food Items: Food products have additional legal metrology requirements. These include displaying the date of manufacture, expiry date, and any specific storage instructions. Additionally, information about food additives and allergens must be prominently mentioned.
Benefits of Legal Metrology Compliance
Compliance with legal metrology regulations offers numerous benefits for e-commerce businesses:
- Builds Consumer Trust: Providing accurate and transparent information fosters trust with consumers, leading to a more positive brand image and increased customer loyalty.
- Reduces Legal Risks: Non-compliance can attract penalties and legal action. Following the regulations safeguards businesses from such risks.
- Ensures Fair Competition: A level playing field is created when all e-commerce platforms adhere to the same standards, promoting healthy competition.
- Improves Operational Efficiency: Streamlining product descriptions and labeling processes can enhance operational efficiency for e-commerce businesses.
No man is above the law, and no man is below it; nor do we ask any man’s permission when we require him to obey it.
President Theodore Roosevelt
Implementing Legal Metrology Compliance
E-commerce businesses can implement legal metrology compliance by following these steps:
- Familiarize with the Rules: Thoroughly understand the Legal Metrology (Packaged Commodities) Rules and any relevant amendments.
- Review Product Information: Ensure product descriptions and labels accurately reflect mandatory declarations and adhere to the specified units of measurement.
- Integrate MRP and Taxes: Clearly display the MRP inclusive of all applicable taxes on product pages.
- Partner with Compliant Suppliers: Partner with suppliers who ensure their products meet legal metrology requirements for packaging and labeling of food items.
- Invest in Training: Train staff involved in product listing and marketing on legal metrology regulations.
- Regular Audits: Conduct periodic audits to identify and address any compliance gaps.
Conclusion
Legal metrology compliance is not just a regulatory requirement; it’s an essential aspect of responsible e-commerce practices. By adhering to these regulations, e-commerce businesses can build trust with consumers, ensure fair competition, and contribute to a transparent and healthy online marketplace in India. Its extremely important to train your product catalog creators or work with ecommerce agency who specializes in creating content which takes care of these important bits.