HC Deb 27 October 1975 vol 898 c1024
25. Mr. Atkinson

asked the Secretary of State for Prices and Consumer Protection if she will seek powers to make the Price Commission responsible for the approval or otherwise of manufacturers' recommended retail prices and their display on the product.

Mr. Maclennan

Manufacturers' recommended prices are not enforceable on retailers. The Director General of Fair Trading is considering the problem of claimed reductions from a recommended price.

Mr. Atkinson

Does my hon. Friend not think it totally illogical for his Department to be concerned with regulating wholesale prices but to have no regulatory powers over retail prices? Is he aware that the overwhelming opinion throughout the country is that products for retail sale should be stamped with a maximum recommended price? If that were done the shoppers would have some idea what is meant when manufacturers print labels with the announcement of a reduction of so much off the maximum recommended price. Will he now come to some conclusion about making it meaningful for manufacturers to print notices announcing so much off the price?

Mr. Maclennan

A number of points are involved. First, our price controls are directed to the prices actually charged and to the firms which charge them. Wholesale and retail margins fall within our controls.

I agree with my hon. Friend's point about misleading recommended prices. This matter is being considered by the Director General of Fair Trading, who is looking at the opinions which have been put forward following publication of a consultative document. My hon. Friend's suggestion would amount to reintroducing retail price maintenance, or would have a similar effect.

Mr. Atkinson

No, it would not.

Mr. Maclennan

I think the consequence would be to the disadvantage of the consumer. It would mean that the maximum price stamped on the item would be that which did not drive the small corner shop out of business.

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