(Original post by hebe001)
We must remember that the minimum price levels proposal refers to luxury items only, not daily necessities.
With regards to how we will regulate this, for starters, as the minimum price proposal will effectively be a law until it is repealed, there will be strict punishments for retailers who sell at lower than the minimum price. This will disincentivise other retailers from doing the same.
Secondly, retailers will be subject to random checks of their financial accounts and sales statements. An independent auditor will go through the sales statement, ensure that none of the goods in question were sold below their minimum price, and this will be cross-referenced with the overall financial accounts to ensure accuracy.
Thirdly, sale of certain goods will have to be registered. For example, with TVs, in accordance with the Wireless Telegraphy Act 1967, TV dealers are required to inform TV Licensing (a group of companies who administer collection of the TV licence fee), within 28 days of each transaction, full details of the buyer or hirer and address of where the equipment will be used. For TVs and other such goods, the transactional details will be scrutinised to ensure that the law has not been broken.
These are just some ways to regulate the minimum price proposal- ideally we'd rather not be in a situation where we would need to pass this into law, but tough times call for tough measures and if we can stimulate the economy by causing minimal discomfort, then we will pursue the relevant measures.
So if i'm reading this right, an independent audit needs to be set up, to audit thousands of shops across the UK on items that you classify as "luxury."
Take a car for example,
Is this luxury? Some people need it for work so it becomes a necessity.
Also, the variety of cars is so complex, it would take extensive regulating to ensure the prices are kept at a fair price and this in turn would damage the Car Industry, as people would just buy second-hand cars using these types of websites, http://www.usedcarsni.com/
This scheme would require tax-payers money to be funded, where is the money coming from to ensure that businesses are complying with the new law? It would indeed have to be an extentsive network of auditors.
So now put this on a wide-scale,
Laptops, Phones, Computers, Beds, Cupboards, Televisions, Gaming Consoles, Expensive Plates, Boxers, Fireplaces, Sofa's, Holidays, Musical Instruments, Tents, etc, etc, etc.
There is simply, too much to regulate. And if I must go further, this will significantly damage business competition, who compete to attract the customers.
This might work for alcohol in Scotland, but that's based on 1 particular item, not a vast-amount.