§ 31. Mr. Boardmanasked the President of the Board of Trade if he is aware that, following the abolition of resale price maintenance, some manufacturers will not honour their own guarantees if the goods have been sold below the manufacturers recommended price; and what action he will take by legislation or otherwise to deal with this situation.
§ Mr. DarlingThe Resale Prices Act, 1964, does not affect the rights of a manufacturer to give or withhold a guarantee for his product. However, I shall be glad to consider any evidence my hon. Friend may have that refusal to give guarantees has increased since the Act came into force.
§ Mr. BoardmanIs my hon. Friend aware that the use of the term"recommended price"is rendering the Resale Prices Act largely ineffective and, in such cases where the normal guarantee is subject to a condition of sale, almost completely ineffective? Cannot his officials 1706 track down these cases He has enough of them.
§ Mr. DarlingWe may have enough of them, but we cannot get the kind of evidence which my hon. Friend thinks we should have. If he has any evidence we should be glad to look at it.
§ Mr. ThorpeWould the Minister of State agree that this would be an outrageous way of subverting the intentions of the Resale Prices Act? Would he see whether he has adequate powers to refer any case to the Monopolies Commission? If not, would he seek to take powers from the House?
§ Mr. DarlingWe have gone carefully into the question of powers and the Law Commission has set up a working party to consider exclusion clauses in contracts, which will cover the question of guarantees. We will await its report and act upon it.