§ 19. Mr. Greville Jannerasked the Secretary of State for Prices and Consumer Protection whether he will legislate to require all prices to be shown inclusive of VAT.
§ Mr. John FraserThis question has been the subject of a very full and helpful report by the Consumer Protection Advisory Committee, published a few days ago, which substantially endorsed the proposals put forward by the Director General of Fair Trading. I am urgently considering the report and hope shortly to announce the action I propose to take on it.
§ Mr. JannerMay I say how very welcome that announcement will be and that one hopes that the action which my hon. Friend proposes to take will be taken very swiftly? In the meantime, will he advise traders to include VAT in the total price shown? In so far as they see fit to show VAT separately, will he advise them to ensure that the words "plus VAT" are given in large letters and to state the percentage of VAT which will be added?
§ Mr. FraserI should be very happy to offer that advice. I think that most traders follow it. A minority does not follow it. That ought to lead to legislation under, I think, Part II of the Fair Trading Act 1973.
§ Mr. NeubertIs it not interesting that recommended retail prices were not required to be inclusive of VAT, and is not this additional evidence that recommended retail prices are a valuable point of reference to the prospective purchaser and are in general well understood by the consumer?
§ Mr. FraserI do not think that advertising a maker's recommended prices exclusive of VAT is of any use to anyone, but that is the view that the CPAC took of it and, therefore, I must accept it.