HC Deb 30 January 1978 vol 943 cc7-8
5. Mr. Madden

asked the Secretary of State for Prices and Consumer Protection if he will seek powers to require that goods displayed as "Xp off" show the price from which the reduction is claimed.

13. Mr. McNamara

asked the Secretary of State for Prices and Consumer Protection if he will seek to regulate flash offers.

Mr. Maclennan

Flash offers and similar practices undoubtedly tend to confuse consumers. I am considering introducing a requirement that when a price reduction is shown both the net price and the price from which the reduction is made should also be marked. The Office of Fair Trading has been examining the general question of bargain offers and is expected to submit recommendations shortly. When we have these, we shall decide on the action that is needed.

Mr. Madden

Does my hon. Friend agree that offers that do not show the price from which the deduction has been made are widely regarded as a con trick by many in the retailing trade? Can he give an indication of when the regulations to which he has referred are likely to be introduced?

Mr. Maclennan

I agree that price information of that sort is extremely misleading. I hope to be able to move rapidly on this matter and I am waiting for indications from the Office of Fair Trading of how it thinks it would be most sensible to proceed.

Mr. Ioan Evans

Will my hon. Friend take urgent action because the situation in supermarkets and shops is a jungle and people often have no real idea of what they should be paying? Is he aware that often the small print on 5p or 10p off offers shows that the customer has to send to the manufacturers to get the refund?

Mr. Maclennan

Shoppers often do not realise that the flash offers indicating so many pence off are indicative not of the retail price but of the manufacturer's recommended price, which may bear little relationship to the price that would normally be paid.

Mr. Kenneth Lewis

Is the hon. Gentleman aware that prices have been going up so frequently in the last two years that any shop or supermarket would have quite a choice of original prices when marking the price of goods?

Mr. Maclennan

I am sure that the hon. Gentleman will welcome the evidence that the rate of inflation is, as the Government forecast, moderating rapidly.