Shops putting prices UP for Christmas!

dacouch

texranger wrote: »

i am on about the retail sector where supermarkets were selling tobacco at heavily reduced prices where small retailers could not compete.

this is the same process going through the system now to stop supermarkets selling cheap alcohol

That is the retail sector, the case was that the large retailers were alleged to be running a price fixing cartel, whereby they all had specific prices for certain tobacco brands.

If the was a fixed RRP that the shops had to abide by, there would have been no case as there would be no need to fix the prices

texranger

dacouch wrote: »

That is the retail sector, the case was that the large retailers were alleged to be running a price fixing cartel, whereby they all had specific prices for certain tobacco brands.

If the was a fixed RRP that the shops had to abide by, there would have been no case as there would be no need to fix the prices

WRONG

Imperial Tobacco is the manufacturer of cigarattes and tobacco products and not a retailer

dacouch

texranger wrote: »

WRONG

Imperial Tobacco is the manufacturer of cigarattes and tobacco products and not a retailer

I understand fully what Imperial are, try reading the link or googling the issue. If you cba I'll give you a summary, the case was brought against
IMP and Gallaher and certain retailers. It was alleged they were acting to ensure the prices of IMP / Gallaher products undercut the prices of the brand opposition for specific brands. In effect whatever the other manufacturer charged at a participating retailer would be undercut by the same retailer for IMP products.

If your statement about there being specific RRPs that retailers have to charge RRP for tobacco products were true, then the case would never happen

"The OFT has concluded that each manufacturer had a series of individual arrangements with each retailer whereby the retail price of a tobacco brand was linked to that of a competing manufacturer's brand. These arrangements restricted the ability of these retailers to determine their selling prices independently and breached the Competition Act 1998."

http://www.oft.gov.uk/news-and-updates/press/2010/39-10