§ Mr. Grocottasked the Secretary of State for Prices and Consumer Protection when the report of the Consumer Protection Advisory Committee on VAT—exclusive prices will be published; and what action he proposes to take.
§ Mr. John FraserThe Committee's fourth report, based on a reference from the Director General of Fair Trading, has been laid before Parliament and is published as a House of Commons paper today.
The reference contained proposals for controlling the practices of (a) advertising displaying or otherwise quoting to consumers VAT—exclusive prices sought or likely to be sought and (b) advertising for the attention of consumers VAT—exclusive recommended retail prices. The Committee agreed with the Director General that the first practice adversely affects the economic interests of consumers and it substantially endorsed his proposals for controlling the practice. However, it had some reservations regarding the extent of criminal offences which might ensue and it accordingly suggested some modifications to the proposals. The Committee was unable to agree with the Director General that the second practice adversely affects the economic interests of consumers.
I welcome the report and am considering carefully what action to take on the proposals.