Help! I'm confused ...
Friday, April 25, 2008 The Office of Fair Trading has issued a statement alleging that certain tobacco manufacturers and retailers may have engaged in unlawful practices in relation to retail prices for tobacco products in the UK. It is suggested that deals between cigarette companies and supermarkets may have restricted the retailers' ability "to determine its selling price independently".
I can understand that the OFT (a government quango) doesn't like price-fixing, but if they really want to help the consumer I suggest they also look at the government's policy on tobacco taxation. In the UK, 80-89% of the cost of tobacco products is pocketed by the Treasury. I'm not an economist, but I can't believe that encourages competitive pricing.
What I really can't get my head around is the extraordinary response from ASH. According to the Financial Times, "Action on Smoking and Health, the anti-smoking pressure group, said it was concerned that cigarette prices were rising faster than justified by levels of taxation and inflation."
Since when did ASH become the voice and friend of the consumer?
Help! I'm confused. (Full story HERE and HERE.)
Simon Clark
The government wants to ban the display of cigarettes behind the counter - out of sight, out of mind. What could be more anti-competitive than that? How the hell can the consumer choose between different brands (and prices) if he can't see what's on offer? I can't wait to read what the OFT thinks about that.
Reader Comments (6)
Sickening to read that OFT "has been building up its case secretly for five years." Oh you disgraceful Nanny state. Oh you disgraceful Bully state. Oh you colossal waster of public money. Surely the Recommended Retail Price for all consumer goods is issued by the manufacturer. Supermarkets' policy is to try and sell below the RRP. Doesn't take vast intrigue to set a slightly lower price within the tiny margin available to them after excise duty has been snatched away.
Regarding ASH's alarm that cigarettes are becoming far too expensive. Well, of course they are alarmed. If everybody really did have to stop smoking for financial reasons, ASH would be out of a job.
It's time the Office of Fair Trading investigated whether the British people are getting value for money from their government and parliamentary system.
They don't need to do this in secret, either.
ASH does seem to come out with some odd statements these days. In the past its news page was a relentless stream of antismoking propaganda. Recently it has slipped in the odd neutral item. Perhaps ASH is worried that one of us will eventually get around to making a complaint to the Charities Commission.
Confused is an understatement. What exactly is the point of ASH? It is certainly not to advocate price reductions on cigarettes through competition.
Although it is not in the OFT's remit, but they should really investigate the extortion taxation on tobacco products and bring New Labour to book.
i was going to a funeral and i was out of cigarettes, i used the local newsagent to get some more. The price i paid was 25p more for my usual cigarette, somethings going wrong with prices. This government put up my cigarettes 11p well over inflation. Well i shall leave my council tax first before this government stop me enjoying my cigarettes. If they put me in prison i shall not have to worry about having anymore bills to pay will I. Its really unfair that they can put up cigarettes in this way, they dont mind taking the revenue from them, bloody hypocrites. How would this governments books balance if we did all give up the fags they wouldnt manage without us.
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