PRICE FIXATION

Timaru Herald, Volume CXXXVII, Issue 19801, 17 May 1934, Page 6

PRICE FIXATION

TOBACCO AND CIGARETTES. By Telegraph—Press Association AUCKLAND, May 16. Cigarette and tobacco prices at cut rate stores have been increased to conform with the schedule cf minimum retail prices which has teen fixed by the tobacco manufacturers and agents. The increases range up to 2d a 2 oz tin of tobacco. Stores whose prices are not lower than those fixed in the schedule were not obliged to make any alteration. Conformity with a list of minimum retail prices was effected in Wellington last month to deal with the extreme price cutting there. This resulted in a suggestion that the plan should be extended throughout the Dominion and, with the addition of further brands, this has now- been done. In addition to fixing the minimum retail price, it is also decreed that the giving away by a retailer of matches, cigarette papers (not already packed in a tin by manufacturers) cash coupon;, or any other articles with cigarettes and tobacco will be regarded as equivalent to selling below the fixed minimum prices. The practice of offering cigarettes for sale in combination with other articles, for example, offering for sale as one parcel a packet of cigarettes and a lighter will also be regarded as equivalent to selling below the fixed minimum prices. The scheme involves cigarette and tobacco lines made or handled by 20 manufacturers and agents operating in New Zealand.