New Delhi, July 15 -- The Centre is looking to make pricing of retail goods more transparent and consumer-friendly through a potential overhaul of the maximum retail price (MRP) system, five people aware of the matter said.

The Union consumer affairs department has sounded out industry associations, consumer bodies and tax officials about the plan on 16 May, the people cited above said on the condition of anonymity. While the intention is to prevent manufacturers marking up retail prices steeply, some believe the proposal may erode pricing freedom.

Retail outlets are currently free to charge any amount up to the maximum printed on the label, and manufacturers do not need to justify how the MRP is arrived at. According to one of the five...