HC Deb 10 November 1955 vol 545 cc1975-7
1. Miss Burton

asked the President of the Board of Trade whether he is aware that a furnishing stores, of which he has been informed, advertises hire-purchase terms for a dining suite complete; that no deposit is necessary the suite being delivered upon the first of 38 weekly payments of 10s.; that the price is stated to be the same whether cash or credit but that the public is confused as one is 49 guineas and one £19; and if he will therefore investigate the matter upon the evidence supplied to him by the hon. Member for Coventry, South.

The President of the Board of Trade (Mr. Peter Thorneycroft)

I have examined the advertisement to which the hon. Member refers. It is confusing. In fact the weekly payments of 10s. relates to a hire-purchase agreement for two years for which a deposit is necessary, and not to a credit sale agreement for 38 weeks for which no deposit is required, but on which the weekly payments would be much greater.

Miss Burton

While I am glad that the right hon. Gentleman agrees that this advertisement of Jay's Furnishing Stores is misleading, may I ask whether he feels able to say that he regards it as completely dishonest and an attempt to muddle the customer? Is he prepared to take steps to stop this abuse in hire-purchase trading?

Mr. Thorneycroft

I will content myself by saying that it is a thoroughly confusing advertisement; but the statute law does not provide for actions in the case of advertisements of that type. Of course, on the hire-purchase agreement the purchaser would be shown the cash price, the hire-purchase price and the amount of each instalment.

Mr. Bottomley

Does the right hon. Gentleman contemplate taking action to prevent this undesirable practice?

Mr. Thorneycroft

I have not closed my mind against action to deal with advertisements but that would require legislation, which is not possible at this stage.

8. Miss Burton

asked the President of the Board of Trade whether he is aware that some furniture retailers are quoting to the public cash prices which are falsified for the purpose of disguising the profit made through the sale of furniture on hire-purchase terms; and what steps he proposes to take to stop this abuse of his hire-purchase regulations by certain multiple retailers.

Mr. P. Thorneycroft

I have seen statements that some furniture retailers inflate their cash prices to make their hire-purchase terms appear more attractive. People can compare the cash and hire-purchase prices charged by different traders and buy where they get the best value for their money. I do not propose to control prices, and no question of contravention of the Hire-Purchase Control Orders arises.

Miss Burton

Is the President aware that I am glad that he is learning about this scandal? May I ask him if he is also aware that I am not asking him to control prices? Further, is he aware that a lecture was given recently by Mr. James Beattie to the Council of Industrial Design—and we subsidise the Council of Industrial Design—to the effect that what the Question asserts is true, and Mr. Beattie himself said that he has seen displayed on articles hire-purchase terms that bear no relation to the cash price? Does the right hon. Gentleman not think that he should stop this practice, because we have given him all the examples we can—three a week?

Mr. Thorneycroft

We cannot really control the cash price which people quote, except by price control, but if they inflate their cash prices, they will be beaten by their competitors.

Mr. Blenkinsop

Is the right hon. Gentleman aware that the great growth of this practice is causing a great deal of anxiety to reputable traders, who dislike it as much as does anybody else?

Mr. Albu

Is the right hon. Gentleman aware that the very large retail organisation which controls a very large part of the trade is bringing pressure to bear on suppliers not to supply independent retail traders who display fair cash prices?