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Draft Price and Charge Indicators (Jersey) Law 200-

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A decision made (04/06/2007) regarding: Draft Price and Charge Indicators (Jersey) Law 200-.

Subject:

Draft Price and Charge Indicators (Jersey) Law 200-

Decision Reference:

MD-E-2007-0111

Exempt clause(s):

 

Type of Report:

(oral or written)

Written

Person Giving Report (if oral):

 

Telephone or

e-mail Meeting?

n/a

Report

File ref:

 

Written report – Title

Draft Price and Charge Indicators (Jersey) Law 200-

Written report – Author

(name and job title)

Trevor Le Roux – Director, Consumer Affairs

Decision(s): The Minister approves the Draft Price and Charge Indicators (Jersey) Law 200- and requests that it be lodged at the States sitting on 5th June 2007.

Reason(s) for decision:

The Draft Price and Charge Indicators (Jersey) Law 200- is a short enabling Law. It will require the States to fully debate the somewhat controversial issue of price marking of goods subsequent to the introduction of Goods and Services Tax. It will also enable the Minister to meet a promise made to the States to lodge the Draft in time to ensure that the matter is debated prior to the summer recess.

Action required:

Trevor Le Roux to send the required report and signed human rights declaration to the States Greffe to enable the draft to be processed.

Signature:

Senator P.F.C.Ozouf

(Minister)

Date of Decision:

4 June 2007

Draft Price and Charge Indicators (Jersey) Law 200-

Minister for Economic Development

Draft Prices and Charges ( Jersey ) Law 200-

Report

The Minister for Economic Development has responsibility for consumer protection legislative policy in the Island. The proposed introduction of a Goods and Services Tax (GST) in 2008 will result in a tax element to the retail prices charged to consumers for those goods and services. The question of how GST will be charged and indicated to consumers was considered by the States on 18th April 2007 during the debate on the GST Law.

There was some concern that what is actually a consumer protection issue, was in danger of clouding the general principles behind the need to introduce the GST Law.

At that sitting the Minister promised to attempt to bring to the States before the summer recess a Law which focuses only on the price marking issue. The draft Prices and Charges (Jersey) Law achieves that objective.

The main provision is that price indications should be inclusive of any goods and services tax which would be charged on a retail supply. However, the draft Law provides for the States to make Regulations that would deal with many aspects of price displays to consumers. If this enabling Law is passed by the States then there will be a presumption in favour of inclusive pricing. The Minister will then propose Regulations with the detail and any possible exceptions. In the longer term it is envisaged that additional Regulations would be proposed for the introduction of the further consumer protection measures of inclusive unit pricing.

This would ensure that Jersey follows consumer protection provisions in existence throughout Europe and many other places in the world.

There are no financial or manpower implications for the States arising from the adoption of this Draft Law. (The additional work will be undertaken within Economic Development’s existing resources)

Trevor Le Roux

Director Consumer Affairs

01 June 2007

 

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