HONOURING OF TRADING STAMPS (Hansard, 5 December 1963)

§ LORD SHEPHERD
My Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.

§ THE LORD CHANCELLOR (LORD DILHORNE)
The legal liability of 1012 stamp trading companies to the recipients of stamps will depend in each case first on whether it can be said that the arrangements made constitute a contract with the customer, and, if they do, upon the terms of the contract.

§ LORD SHEPHERD
My Lords, I am grateful for that Answer from the noble and learned Lord who sits on the Woolsack. I would ask him whether he has seen any of the contracts or any of the terms which the stamp trading companies have issued, through the retailers, to the consumers. If he has seen either of these documents, would he not agree that the terms are such that it would be highly possible for a considerable fraud to be conducted, not only against the consumer but also against the retailer? Is the noble and learned Lord not aware that these stamps are issued by the stamp company through the retailer to the consumer, but that the stamp company retains the sole title to those stamps from beginning to end until they are redeemed? Therefore, would it not appear that if a company desired to go into voluntary liquidation, or was forced to do so, these stamps would be absolutely worthless to the consumer? In view of this, would the noble and learned Lord consider the necessity of bringing forward legislation to compel these companies to trade under a licence?

§ THE LORD CHANCELLOR
My Lords, I do not think that there is any ministerial responsibility whatsoever for the private arrangements entered into by companies with other individuals; and their rights must depend on the terms of the arrangements they enter into. I am grateful to the noble Lord for the information which he has given me, but I would point out to him that it is no part of my duty to advise on individuals' legal rights.

§ LORD SHEPHERD
My Lords, would the noble Lord consider setting up an inquiry—a very quick inquiry—to look into the whole of the aspects of stamp trading in order to see whether legislation is necessary?

§ THE LORD CHANCELLOR
My Lords, that seems to me to be a very long way away from the Question on the Order Paper.

§ LORD BARNBY
My Lords, would the noble and learned Lord on the Woolsack, in view of his previous reply, add that, since this is a matter between the stamp trading companies and the firms issuing them, it is a similar question to that of resale price maintenance? It is something between producer and seller.

§ THE LORD CHANCELLOR
My Lords, that is seeking to lead me into even deeper waters. All I was asked in the original Question was to express a view in regard to legal liability, and I have answered that Question.

§ LORD MORRISON OF LAMBETH
My Lords, has the noble and learned Lord the Lord Chancellor answered that Question? I submit that he has not answered it, and did not wish to answer it. Surely the public, when they are signing these contracts, have a right to know from the Government what is their legal position in this matter, as to what liabilities they are getting and what liabilities they are giving up. Surely it is for the Government to give advice to the public—who, after all, pay the Government—as to what the situation is.

§ THE LORD CHANCELLOR
My Lords, that is a very novel doctrine, and would certainly deprive many solicitors of much remuneration.

§ LORD STONHAM
My Lords, I understood the noble and learned Lord the Lord Chancellor to say that the matters raised by my noble friend Lord Shepherd were not a matter for him. But, surely, we have spent about three years on Weights and Measures Bills setting up a Consumer Advisory Council, with which the Government intend to protect the consumer. Here is a matter in which the consumer is very much in need of protection, and the Lord Chancellor says that it is not a matter for him. It certainly is a matter for the Government.

§ THE LORD CHANCELLOR
The noble Lord has taken my answer completely out of its context. The matter of consumer protection is indeed a matter for the Government. There will shortly be a Bill coming before your Lordships which will add considerably to it. I was asked about the legal liability of 1014 certain companies on transactions into which they have entered. There is no ministerial responsibility in relation to that.