Opinion Number. 862

Subject

PRICE FIXING
WHETHER VENDOR CAN MAKE ADDITIONAL CHARGE FOR WRAPPING WHERE PRICE OF BREAD IS FIXED AT DEFINITE RATE

Key Legislation

WAR PRECAUTIONS (PRICES) REGULATIONS

Date

The Solicitor-General advised on 1 February 1917, that where the price of bread has been fixed at a definite rate, the vendor cannot legally make an additional charge for wrapping the bread, and that where the price has been definitely fixed, such price includes everthing that is done in the ordinary course of business prior to actual delivery, e.g. wrapping.(1)

On 11 April, the Crown Solicitor advised that as the order fixing the price of bread was silent on the question of wrapping, the vendor was entitled to make a separate charge for wrapping paper. The Crown Solicitor added that it was not obligatory on the purchaser to take wrapping paper, and that if he bought bread only, he was entitled to get it at the fixed price.

The matter has now been submitted to me for advice.

I am of opinion that the legality or otherwise of making an additional charge for wrapping goods would depend to a great extent upon the circumstances of the sale and the custom of the trade.

If, in the case of goods which in the ordinary course of business have hitherto been sold wrapped up and no charge for wrapping, are sold wrapped up, the purchaser is charged a higher price than the maximum price fixed for the goods and is not notified that the additional charge is for wrapping, the court would be entitled to hold the charge made was illegal.

If, on the other hand, the purchaser is informed by the vendor that an additional charge is made for wrapping and the purchaser is given the option of taking the goods wrapped or otherwise, no offence would be committed by the vendor in charging for wrapping if the purchaser elects to have the goods wrapped.

There is no doubt that the making of an additional charge for wrapping is used as a means of evading the War Precautions (Prices) Regulations, and the orders made thereunder. It, therefore, appears desirable that the Regulations should be amended by providing that the price fixed in any order made under the Regulations shall, unless the contrary intention is expressed in the order, be deemed to include charges for wrapping the goods.

[Vol. 15, p. 449]

(1)This advice, given in an opinion [Vol.15, p. 12] not published herein, was in response to questions submitted by the Country Master Bakers' Association ‘ . . . so that any baker who may have been charging the additional amount may know if he is or is not breaking the law, and my Association desires to prevent any possibility of same’.