§ Mrs. Curtis-ThomasTo ask the Secretary of State for Trade and Industry if he will make a statement on the impact of prohibitions in below-cost selling, with special reference to the recent report of the Competition Commission on the trading restrictions of supermarkets. [160099]
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§ Dr. HowellsThe Competition Commission made an adverse finding in relation to persistent selling below cost of certain frequently purchased goods. However, they concluded that a prohibition of the practice would itself have adverse effects, for example consumers might pay more for their shopping basket overall, and that the degree of intervention and monitoring required by a prohibition would be disproportionate to the problem. My right hon. Friend the Secretary of State for Trade and Industry accepted the recommendation made by the Competition Commission not to prohibit below-cost selling of certain frequently purchased goods.