DTI's on the case The DTI has turned all matey with the multiples now it has the big luxury brand suppliers in its sights, says Anne Bruce Publication of a DTI international price survey last week rebooted the Rip-off Britain' debate against the backdrop of an imminent general election. At first glance, the British retailing scene was back in the dock. Researchers looked at the price of a range of like for like internationally traded branded luxury goods in France, Germany, Sweden, the UK and US. They found the UK high street was the most expensive for 40% of the 133 goods in 57 categories. But the report is a UK/ Swedish joint platform launching a campaign to end EU restrictions on the resale of branded goods, and brand manufacturers were the villains of the day. The current EU trademark regime allows designer companies to stop the import of their goods from outside the EU for resale inside it. So supermarkets' confrontational policies, beating down greedy brand owners on non food prices, make them the heroes. The survey found that a U2 chart CD costs an average of £13.56 in the UK, compared to £12.45 in Sweden, £10.60 in France, £10.59 in the US but only £9.66 in Germany. Tesco sells the CD for a reasonable £11.99. Secretary of state for trade and industry Stephen Byers seized the opportunity to do more than portray himself as a consumer champion. Here was the chance to make it up to the multiples and repair the damage to his reputation following the damp squib of a protracted Competition Commission inquiry which had broadly drawn a blank in scrutinising just how much ripping off the multiples were doing. He proclaimed the goals of the survey flanked by Tim Mason, marketing director of Tesco, and Sioned Rees-Thomas, international sourcing director of Asda. He said: "Allowing brands to dictate which retailers can sell their products and from where they can import them is unacceptable. We want to find consumers the best deal by allowing retailers to source their goods from anywhere in the world, not just from where the brand owner decides." But John Noble, director of the British Brands Group, which represents brand manufacturers, was unimpressed: "The government is close to an election, and is keen to be seen as consumer champion, as are the supermarkets. "But the report is self-serving, and does not do justice to strong commercial arguments on both sides." Noble said the survey proved that dropping cross border restrictions in the EU through the common market had not brought prices in line across Europe. He pointed out: "Costs of doing business differ across the world, which accounts for price variations. "An EU study ­ the 1998 Nera report ­ found that parallel trading lowers the cost to consumers by only 0-2%, but it shifts 35% of profits from manufacturers to traders. "Cross border trading has been in effect in the EU since 1992, so the DTI survey should be showing a single low price if it was working in the consumer interest. It just goes to show that price is not wholly in line with cheap sourcing, and exonerates manufacturers." Tesco, which has sourced branded goods on the grey market since 1997 hailed the DTI initiative for reform as a landmark day for consumers. Tim Mason said: "Currently the brands are using the European Trademark Directive to try and restrict global trade. This puts British customers here at a disadvantage rather than protecting them. The resulting lack of competition has meant prices have been kept too high for too long." He added: "We're searching for the best deals around the world, not just in Europe, to offer to customers the lowest price. Using Tesco.com, we want to make these bargains available to every UK household. Prices for branded products will plummet, while the range available will go through the roof." The designer items Tesco plans to put on sale at Tesco.com include women's 535 Levi jeans at £25 (high street price £45), a Panasonic Silver DVD RV20EG reduced from £279.99 to 199.99, and Chloe 30ml spray at £12 (high street price £21). Asda is putting £30m of new designer goods on sale and extended its use of the grey market to new Asda vision centres and jewellery stores, following the survey. Sioned Rees-Thomas said: "We're making designer products affordable, and are delighted the British government has seen through the smoke and mirrors to press for a better deal." It is to chop up to two thirds off recommended retail prices on designer fragrances, watches, spectacles and sunglasses. CK One 100ml spray, which has an rsp of £28.75, is to go on sale with a 30% discount to £19.97, and Fendi Sunglasses are down 69% to £39.99. But even as the multiples bang the DTI's new drum, the fact remains that any changes to trademark legislation assented to by the EU Parliament will take years to become law. {{NEWS }}