If you have ever bought something online in India and wondered whether the "72% off" label on the product was real, you are not alone. India has one of the most discount-label-heavy e-commerce environments in the world — and a significant portion of those discounts are misleading.
Understanding why requires understanding what MRP actually is, and how it is used (and abused) in the Indian market.
What Is MRP?
MRP stands for Maximum Retail Price. Under the Legal Metrology (Packaged Commodities) Rules in India, most packaged consumer goods must declare a Maximum Retail Price — the highest price at which the product can legally be sold to a consumer.
The concept was introduced to protect buyers from price gouging. In a physical retail environment, the MRP printed on a packet gives the customer a reference: they know they should never pay more than this. In practice, most goods are sold at a discount from MRP, and the MRP becomes the ceiling, not the actual price.
How MRP Works in Practice
In a physical kirana store, for example, a bar of soap with an MRP of ₹50 might sell for ₹45. A cereal box with an MRP of ₹220 might sell for ₹200. The retailer is discounting from MRP, but the MRP is set by the manufacturer and printed on the packaging — it cannot be changed arbitrarily.
On e-commerce platforms, the situation is different. Sellers — most of whom are third-party sellers, not the original manufacturer — declare their own MRP on the listing. For products where the MRP is printed on the physical package, this is constrained. But for fashion, accessories, lifestyle products, and many electronics categories, the MRP on the listing can be whatever the seller says it is. This applies across Amazon India, Flipkart, Myntra, and Ajio alike.
Why This Creates Fake Discounts
Here is the mechanics of a fake discount on Flipkart or Amazon:
A third-party seller lists a Bluetooth speaker. The actual market price for this speaker is around ₹1,499. The seller lists it with an MRP of ₹4,999 and a selling price of ₹1,499. That generates a "70% off" label automatically.
From a buyer's perspective, ₹4,999 looks like the "original" or "real" price. The seller is betting that buyers will not know — or cannot easily verify — that the product was never actually sold for ₹4,999 anywhere.
Amazon and Flipkart both have policies against artificially inflated MRPs. Both enforce those policies imperfectly. The scale of third-party listings makes thorough enforcement difficult, and there is, as noted earlier, a commercial incentive to allow high-discount-label products to feature prominently in sale events.
The Difference Between MRP Inflation and Genuine Discounts
Not every large discount percentage is fake. Genuine discounts exist — especially:
- Clearance of older inventory: A television model from two years ago genuinely might be discounted 40% to clear stock.
- New model launches causing predecessor discounts: When a new phone launches, the previous generation may see a genuine 20–30% drop.
- Loss-leader deals: During major sale events, some products are priced below cost as traffic drivers. These are real.
- Manufacturer-subsidised deals: Brands sometimes subsidise deals directly to promote their products on major platforms.
The difference between a genuine discount and an MRP-inflated one is visible in the price history. A genuine discount appears as a price drop on the chart — the price was higher before and has now fallen. An MRP-inflated "discount" appears as a flat line: the product has always sold near the same price regardless of what the MRP says.
Which Products Are Most Affected?
Most affected: - Fashion and apparel: T-shirts, kurtas, sarees, dresses — where no standard reference price exists and MRP is essentially arbitrary for most products. - Accessories and lifestyle: Watches, bags, sunglasses, jewellery — same dynamics. - Unbranded/generic electronics accessories: Cables, chargers, phone cases. - Home decor and textiles: Bedsheets, curtains, cushions.
Less affected: - Branded electronics (smartphones, laptops, TVs): Multiple sellers, active price comparison, and brand reputation create constraints on MRP inflation. - FMCG products (packaged food, toiletries): MRP is physically printed on packaging. - Books: Standard pricing, less seller manipulation.
How to Protect Yourself
The single most effective protection against fake discounts is checking price history. A price history chart answers the only question that matters: has this product actually sold at a price lower than today's price before?
To check: 1. Copy the product link from Amazon, Flipkart, Myntra, or Ajio. 2. Paste it into PriceDiff. 3. Look at the chart. If the price has been at or below today's price consistently for months, today's "discount" is not real. 4. If the chart shows a genuine drop to a new low, the deal is worth considering.
A few seconds of checking price history is the most reliable protection against MRP manipulation — far more reliable than trusting the discount percentage shown on the listing. (See our broader guide to spotting fake discounts during sale events for specific patterns to watch.)
What About Consumer Protection?
The Central Consumer Protection Authority (CCPA) and other Indian regulatory bodies have taken action against some cases of MRP manipulation, particularly where it was egregious. The Bureau of Indian Standards and the Ministry of Consumer Affairs have issued guidelines.
However, enforcement at scale across millions of listings remains limited. Platform-level self-regulation exists but is imperfect. Until stronger enforcement mechanisms are in place, the most practical protection is price history transparency — which is exactly what tools like PriceDiff exist to provide. Read about how we collect and verify price data and our editorial standards.