MRP Fraud: Legalised Loot
“All your essential medicines, delivered with personalized care…. Enjoy up to 35% off on all your medicine orders” advertises one of the online e-pharma companies. This means, substantial discount is given on the printed price, which is called as maximum retail price ((MRP). The e-pharma firm is able to extend such a hefty discount, as the firm would still make a substantial profit. More and more e-pharma firms are making their entry into this segment, as this segment is an ever growing cash cow. Maximum retail price (MRP) is a manufacturer calculated price that is the highest price that can be charged for a product sold in India and Bangladesh. However, retailers may choose to sell products for less than the MRP. MRP differs from systems using a recommended retail price because in those systems the price calculated by the manufacturer is only a recommendation, not enforceable by law. Maximum Retail Price = Product’s actual Cost + Profit Margin + CnF margin + Distributor Ma