Come on down ... the price is still all wrong 1 Edition

• Published in: Scotsman (Edinburgh, Scotland : Daily)
• Main Author: In Rip Off Britain buyers still pay over the odds for many things, say Stephen McGinty and Alison Gray
• Format: Newspaper Article
• Language: English
• Published: Edinburgh (UK) Scotsman Publications 02.08.2000
• Subjects: Daley, ARTHUR; Wilson, Peter
• ISSN: 0307-5850

The evidence that the British public are digging deeper into their pockets that their European and American neighbours is persuasive. In 1997 a report by the treasury said that furniture in Britain was 56 per cent more expensive than in America, while US firms relocating staff to Britain often increase salaries by as much as 75 per cent to ensure an equitable standard of living. Each Christmas newspapers explain how consumers can save the entire cost of a four-day shopping trip to New York on judicious purchases such as electrical goods and designer labels. While a Department of Trade and Industry report published in February attempted to compare and contrast 100 shopping items from Britain with France, Germany and America, crucial white goods such as cookers and fridges were excluded, because of the difference in brands. Instead the report was effectively branded a wash out by Kim Howells, the consumer affairs minister, who insisted on it being commissioned. Despite the problems of reluctant civil servants it still proved that the British pay more for items such as CDs, PlayStation game consoles, lager and toilet paper. So why does Britain pay more for identical goods than Europe and America? The problem of high prices often hinges round the recommended retail price, a gentleman's agreement among manufacturers. Retail price maintenance, the system that ensured everyone paid the same for each item, was abolished in the 1950s, however the RRP has remained. While technically shops should be allowed to lower prices as they desire, manufacturers regularly dissuade them by refusing to sell to those who drop prices.