Can Penalty be Imposed for Quantifying Goods by Pieces instead of Weight?

The quantity of any commodity must be clearly stated for adequate calculation of various expenses such as freight and transportation charges related to it. However, when it comes to declaring such details, the question arises whether goods should be declared in terms of weight or individual pieces.

Food Safety and Standards (Packaging and Labelling) Regulations, 2011

As per Regulation 2.2.2.7, net quantity by weight, volume or number, as the case may be, shall be declared on every package of food. It further states that in addition to the declaration of net quantity, a food packaged in a liquid medium shall carry a declaration of the drained weight of the food.

• The above-mentioned rule can basically be understood inter alia as declaring the net quantity of the goods in the packaging, while the weight of the wrappers and packaging materials shall be excluded.
• After taking this rule into consideration, it can be deemed that the declaration of the net quantity can be made either by referring to the weight or the number of pieces of the specific good.

Regulation 2.3.1.2 states that the declaration should be legible and prominent, definite, plain and unambiguous. It also provides for the declaration to be conspicuous as to size number and color.

Legal Metrology Act, 2009

The introduction of the Legal Metrology Act, 2009 aimed to standardize trade and commerce in weights, measures and other goods that are sold or distributed by weights, measure or number.

Legal metrology refers to that part of metrology which inter alia treats units of weighment and measurement and methods thereof in relation to the mandatory technical and legal requirements which have the object of ensuring public guarantee from the security and accuracy perspective of weighments and measurements.

‘Prepackaged commodity’ refers to commodities packaged in the absence of the purchaser, whether sealed or not.

• As per Section 11 of the Act, the declaration of the net quantity of any prepackaged item must only be made in the standard unit of weight.
• Section 29 states the penalty for violating this rule may extend up to INR 10,000 and for the subsequent offences thereafter, may include imprisonment for a term that may extend to one year or a fine, or both.

Note: As per Section 48, this is compoundable offence.

• Provisions under Section 18 provide that no individual shall manufacture, pack, sell, import, distribute, or deliver for sale any prepackaged item unless they are packaged in standard quantities or number and bears a declaration and details as prescribed.
• Section 30 states that if anything is sold by weight or number and is delivered in a lesser quantity or number as contracted or paid for, the fine may extend to INR 10,000. For the second and subsequent offence, it can include imprisonment, which may extend up to one year, or fine or both.

Note: As per Section 48, this is compoundable offence.

Section 36 of the Act defines the penalty in case a person manufactures, packs, imports, or sells any prepackaged item that does not adhere to the declarations made on the package, as listed below:

First Offence	May extend up to INR 25,000
Second Offence	May extend up to INR 50,000
Subsequent Offence	Must not be less than INR 50,000 & may extend up to INR 1,00,000

The offence can lead to fines as per the above-mentioned structure or imprisonment of up to one year, or both.

Note: As per Section 48, this is compoundable offence.

Legal Metrology (Packaged Commodities) Rules, 2011

Rule 6(1)(c) states that all packages must bear a definite, plain and conspicuous declaration of the net quantity, be it in terms of the standard unit of weight, measure of item contained in the package, or, in cases where the item is packed and sold by number, the number of items contained in the package.

• Besides, Rule 6(10) deems the eCommerce entity responsible to ensure that the declaration with respect to the quantity is always displayed on the digital and electronic network used for eCommerce transactions.
• In the case of a marketplace model, it is the manufacturer’s, seller’s or dealer’s responsibility to ensure the correctness of such declarations.

Note: As per Rule 11, in cases where an item in a package does not undergo variations in weight on account of environmental conditions, the quantity stated on the package must be the quantity that the consumer ultimately receives. In addition, Rule 12 states that declaration of quantity of items shall be in terms of weight, measure, number, or a combination of these metrics to give the consumer accurate and adequate details of such items.

• Rule 12(6) explicitly defines that the declaration of quantity on commodities must not contain any word or expression that can create a misleading or inaccurate expression with respect to the quantity of the commodities.

Provisions under Rule 12 (5)(ii) provide that in cases where commodities are sold by number, the number, units, pieces, pairs, or any such number that defines the quantity of the specific commodity must be declared on the package.

Rule 18 deems that no wholesale dealer or retailer can sell, distribute or store for sale any item that does not fall in accordance with all of the above-mentioned rules.

Rule 21 provides for inspections at the premises of the wholesale dealers or retailers under certain conditions. If, post inspection, it is found that there is some difference in the quantity of the package and the quantity declared on the package and it exceeds the maximum permissible limit, the Director or Controller or any Legal Metrology Officer shall seize the items and take adequate action in accordance with the rules of the Act.

The Telangana and Andhra Pradesh High Court, in the case of The State of Telangana vs. Himjal Beverages Pvt. Ltd., held that the declarations mandated under Section 18 of the Legal Metrology Act read with Rule 6 (1) and (2) are mandatory and the manufacturer, etc. are legally liable to adhere to such requirements.

The Telangana and Andhra Pradesh High Court, in the case of The State of Telangana vs. Himjal Beverages Pvt. Ltd., held that the declarations mandated under Section 18 of the Legal Metrology Act read with Rule 6 (1) and (2) are mandatory and the manufacturer, etc. are legally liable to adhere to such requirements.

Conclusion

It is imperative for prepackaged items to carry declarations. The metrics of such declarations can vary depending upon the packaged item. For items that are packaged as per pieces, like a pack of pencils, they must have a declaration of the total number of items in the packet, while something packed in specific weights must contain a declaration defining the weight of the packaged item.

It is to be noted that recently, a press release by the Ministry of Consumer Affairs, Food & Public Distribution asked edible oil manufacturers, packers and importers to declare the net quantity of their items in volume without temperature in addition to declaring the same in weight.