Collective Price Fixing Abandoned
Changes in the constitution and trading practices of the British Radio Valve Manufacturers Association, having effect from September 1, 1956, are announced in the following statement issued to the Press:
It will be known that the Association abandoned its stop list and allied provisions some years ago and it has now discontinued all arrangements for collective resale price maintenance on the part of the manufacturers. This has been made necessary by the Restrictive Trade Practices Act which, in effect, prohibits this practice. It will in future be for each individual manufacturer to maintain the prices of his own valves and tubes if he so desires.
Hitherto BVA Prices have been fixed by agreement of all manufacturers who are members of the Association. This policy has also been abandoned. From knowledge of the structure of the industry, however, and in view of the present period of recession with continually rising costs, it will be appreciated that although prices are no longer to be fixed by agreement it does not follow that the prices of comparable valves and tubes will necessarily vary between one manufacturer and another in the immediate future.
In coming to the decision to abandon collective fixing of prices, the Association has had in mind that if this practice were to be continued it would in all probability have to be justified in the very near future before the Restrictive Trade Practices Court in the light of the narrow economic criteria set out in the Act. The practice of fixing prices by agreement is not in the present state of the industry of the same degree of importance as it has been in the past or as it may well be in the future.
Apart from the foregoing the Association is continuing its general policy in the interests of the public, the trade and the industry itself, including its vast field of technical collaboration between the manufacturers, with the Services and in international fields.
Members of the BVA are:
- A C Cossor Ltd.
- Edison Swan Electric Co Ltd.
- Ever Ready Radio Valve Co Ltd.
- Ferranti Ltd.
- General Electric Co Ltd.
- Marconiphone Co Ltd
- Mullard Ltd.
- Philips Electrical Ltd.
- Standard Telephones & Cables Ltd.