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Understanding the Legal Metrology Act for Business
Legal metrology is a branch of law that deals with units of measurement and weights for businesses. In India, the legislation regulating this branch is called Legal Metrology Act, governed by the Ministry of Consumer Affairs, Food, and Public Distribution. This article talks about the various aspects of Legal metrology Act for b businesses.
What is the Legal Metrology Act, 2009?
The Legal Metrology Act establishes and enforces standards for weights and measures, regulating their use in trade and commerce for goods sold or distributed by weight, measure, or number. It also addresses related matters to ensure fairness and accuracy.
Under the Act, Legal Metrology is defined as the branch of metrology dealing with units of weight and measurement, methods, and instruments. It focuses on mandatory technical and legal requirements to ensure public assurance regarding the security and accuracy of weights and measurements.
Objectives of the Legal Metrology Act for Business
The Legal Metrology Act 2009 was introduced in 2011. The main objectives of the Legal Metrology Act were -
- To establish and enforce standards of weights and measures.
- Regulate trade and commerce in weights, measures, and other goods that are sold or distributed by weight, number, or measure.
Who is Covered Under the Legal Metrology Act?
The Legal Metrology Act, 2009 governs:
- Persons using weight or measure in transactions or production.
- Manufacturers, dealers, and repairers of weights and measures.
- Importers and packers of weights, measures, and numbers.
The Act defines these terms as follows:
- Manufacturer: A person who produces weights or measures, or pre-packaged commodities by assembling different parts into a finished product.
- Dealer: A person engaged in buying, selling, supplying, or distributing weights or measures for monetary consideration.
- Packer: A person or firm that pre-packs commodities in units, such as bottles, tins, or wrappers, for wholesale or retail sale.
- Importer: Any individual, firm, or entity that brings goods into a customs territory from another country.
- Repairer: A person who repairs weights or measures, which includes adjusting, cleaning, lubricating, painting, or performing any other service to ensure compliance with the standards of the Legal Metrology Act.
Advantages of Legal Metrology Compliance for Business
The Legal Metrology Act has a multitude of benefits for associations. Here are some of its advantages -
- The legal metrology rules ensure precision in weighing and measuring, thus diminishing the issues related to extortion or deception. This improves consumer trust and incites buyer faithfulness and commitment.
- Compliance helps companies to avoid fines and foster discipline.
- Legal Metrology compliance progresses fair challenges by creating a level playing field for all organizations.
- Compliance helps businesses develop a positive brand image. It shows their commitment to customer protection and customer satisfaction.
What are Pre-packed Commodities and Declarations?
Pre-Packaged Commodity -
A pre-packaged commodity, as defined under Section 2(l) of the Legal Metrology Act, refers to a commodity that is placed in a package, sealed or not, in a predetermined quantity without the purchaser being present.
In Philips India Ltd. vs. Union of India, the Madras High Court ruled that televisions, audio, and video players do not qualify as pre-packed commodities, as they are only packed for safe transport. However, in Whirlpool of India Ltd. vs. Union of India, the Supreme Court of India held that refrigerators fall under the definition of pre-packed commodities, subject to the provisions of the Standards of Weights and Measures Act, 1976.
These inconsistencies with the Standards of Weights and Measures Act 1976, led to the enactment of the Legal Metrology Act, 2009, and the subsequent introduction of the Legal Metrology (Packaged Commodities) Rules, 2011.
Declarations to be Made on Pre-packaged Commodities -
The Legal Metrology Act, 2009, along with the Legal Metrology (Packaged Commodities) Rules, 2011, mandates the declaration of specific information on the packaging of pre-packed commodities intended for commercialization in India.
According to Rule 6 of the Legal Metrology (Packaged Commodities) Rules, 2011, the following declarations must be made on the label of any pre-packaged commodity:
- The name and address of the manufacturer, and if the manufacturer is not the packer, the names and addresses of both the manufacturer and packer. For imported goods, the name and address of the importer must be included.
- The common or generic name of the commodity. If the package contains more than one product, the name and quantity or number of each product must be listed.
- The net quantity, either in terms of standard weight or measure, or the number of items contained in the package.
- The month and year of manufacture, pre-packing, or importation.
- The retail price of the package.
- If the size of the commodity is relevant, the dimensions of the commodity must be mentioned. If the dimensions of different pieces vary, the dimensions of each piece should be included.
Mandatory Labeling Requirements for Cosmetic Products
In India, the packaging and labeling of cosmetic products are governed by multiple overlapping laws and regulations:
- The Drugs & Cosmetics Act, 1940 and Rules, 2020
- The Legal Metrology Act, 2009, and Legal Metrology (Packaged Commodities) Rules, 2011
- ECO Labelling Standards by BIS (Bureau of Indian Standards)
General Declarations Under the Legal Metrology Act
- The common or generic name of the product must be displayed on both inner and outer labels.
- The name and address of the manufacturer must appear on both inner and outer labels.
- Manufacturing and expiry/use-before dates must be mentioned on both labels.
- The net quantity must be specified on the outer label using standard units of weight or measure as per the Legal Metrology Act, 2009.
- The retail sale price of the package must be included.
- A batch number is not required for cosmetics weighing 10 grams or less or measuring 25 milliliters or less. For soaps, only the month and year of manufacture are necessary.
- Any hazards must be clearly stated on the inner label, along with the names and quantities of hazardous or poisonous ingredients, if applicable.
- Ingredients must be listed unless the package is smaller than 60 ml or 30 gm.
- For imported cosmetics, the Registration Certificate Number (RCN) must be included on the label.
- Consumer care details must be provided for customer assistance.
- Products must display a green dot for vegetarian origin and a brown/red dot for non-vegetarian origin.
- If the product does not conform to standard sizes under the Legal Metrology (Packaged Commodities) Rules, 2011.
Declarations on Pre-Packaged Electronic Goods
As per the rule, electronic products manufactured, packed, or imported after July 15, 2022, must include the following details through a QR code for one year:
- The name of the manufacturer, packer, or importer, with a prompt for consumers to scan the QR code for the address and additional details.
- The common or generic name of the product.
- The size and dimensions of the product.
- Contact information of the manufacturer, packer, or importer.
Frequently Asked Questions
Q- What is the Legal Metrology Act?
This Act aims to establish and enforce standards for weights and measures, regulate trade and commerce involving goods sold or distributed by weight, measure, or number, and address related or incidental matters.
Q- What is a pre-packed commodity?
A pre-packed commodity refers to a product that is packaged without the purchaser being present in any type of package, whether sealed or open, with a pre-determined value. It also includes commodities that can be removed from the package for testing, examination, or inspection.
Q- What to consider before purchasing imported items?
Here are the things you must check before purchasing the imported items -
- Name and complete address of the manufacturer, packer, and/or importer of the packaged commodity.
- Net contents are specified in terms of weight, volume, or number.
- Date of manufacture, packing, or import of the commodity (month and year).
- Maximum Retail Price (MRP), inclusive of all taxes.
- Generic name of the commodity.
- Customer care contact details, including name, address, telephone number, and office/person to be contacted for consumer complaints.
- Size of the product, if applicable.
Q- What should a consumer look for in a pre-packed commodity?
Here are a few things that a consumer must look for on a pre-packed commodity -
- Maximum Retail Price (Inclusive of all taxes)
- Common or generic name of the commodity
- Net content/Quantity
- Name of the manufacture/packer or both
- Date of Packaging
- Phone Number/Consumer Care No.
- Email ID, if any
Q- Why do you need a Legal Metrology license?
If you are a seller, importer, packer, or manufacturer dealing in packaged commodities or packed food products, you must comply with the Legal Metrology (Packaged Commodity) Rules under the Legal Metrology Act, 2009, regulated by the Department of Legal Metrology. Non-compliance can result in penalties, including a fine of ₹25,000 per director, which may extend to ₹1,00,000, imprisonment for up to one year, or both.