Barbers Undertake Not To Fix Prices

Press, Volume CVI, Issue 31145, 23 August 1966, Page 1

Barbers Undertake Not To Fix Prices

(From Our Own Reporter!

WELLINGTON, August 22.

As the result of a decision of the Canterbury’ and Westland Hairdressers and Tobacconists’ Association not to influence the prices charged for men’s haircuts, the Trade Practices and Prices Commission has agreed to dispense with holding an inquiry.

The commission decided to make an order prohibiting the association or any of its members at any time in the future from entering into any agreement or arrangement to perform hairdressing or haircutting services at prices agreed upon.

“Henceforth the members of the association shall individually determine their prices for performing haircutting or hairdressing services without reference or consultation with any person or persons,” says the decision. The Examiner of Trade Practices reported last October that, having investigated price increases by members of the Canterbury and Westland Tobacconists’ Association, he had formed the opinion that the association’s pricing activities constituted a trade practice as defined in the act.

This practice originated in a resolution by the association on September 8, 1964, which fixed haircutting prices as 4s 6d for adults and

secondary schoolchildren and 3s 6d for primary schoolchildren, and which agreed to charge schoolchildren full rates on the day of the weekly late night. The examiner found that this trade practice fell substantially within the category defined in section 19 of the Act. He deemed that the effect of the trade practice was contrary to the public interest as in section 20, as “increasing unreasonably the prices at which goods are sold.”

On June 14, the examiner reported the association had provided evidence that it had abandoned collectively fixing prices, and had notified all members by circular letter as follows: “That the resolution carried at the quarterly general meeting on September 8, 1964, recommending prices for haircutting from September 21, 1964, be rescinded. “It is agreed that henceforth it is the policy of the association not to decide, recommend or influence the prices to be charged for male hairdressing. “That members be advised of the text of the foregoing resolutions, that they be asked to return the price cards distributed in 1964, and that they be advised that henceforward prices to be charged for male hairdressing shall be determined solely by the hairdresser concerned and without consultation or agreement with any other hairdresser."

The association requested that the commission exercise

its discretion under section 17 (2) of the Trade Practices Act to dispense with the holding of an inquiry. The commission has agreed to do this, and to issue an order prohibiting the association or any of its members from entering into price agreements in future.