WRITTEN QUESTION P-3627/02

by Kathleen Van Brempt (PSE) to the Commission

(10 December 2002)

Subject: Increase in toy prices

Consumers' associations in the Netherlands and Belgium are currently investigating retail toy prices. In the Netherlands, the Consumers' Association (Consumentenbond) claims to have enough evidence to prove that retailers are agreeing not to undercut each other's prices and that the manufacturers are keeping prices artificially high. The Consumentenbond also says that the prices of the most popular toys have increased by 40 % over the past two years. It also recognises a delayed euro effect: when the euro was introduced, the prices of many toys were rounded up. In some cases, that has resulted in a 10 % increase over last year's prices.

Is the Commission aware of any price-fixing on the toy market in the Netherlands and Belgium or in the other EU Member States? If so, what is it doing to counteract this phenomenon?

Is the Commission aware that retailers are charging higher prices since the advent of the euro? If so, does it have any figures available?

Answer given by Mr Monti on behalf of the Commission

(17 January 2003)

The Commission is aware of the fact that consumer organisations are currently examining retail prices for toys on the Dutch and Belgium markets. Taking into account the strongly national character of the markets at issue, the Commission considers that the allegations of price fixing are best looked at by the national competition authorities. It has been informed that contacts on these matters exist already between the Dutch Competition Authority and the respective consumer organisation.

The cash changeover to the euro in January 2002 has been the focus of much attention, not only by the Commission but also by non-governmental organisations and research institutes.

Eurostat's analyses(1) indicate that the euro-changeover seems to have led to some price increases for specific products, such as restaurants & cafes and hairdressers, but that the overall effect on prices in the euro-zone has been limited. For the all items Harmonised Index of Consumer Prices, the price increase most likely falls within the range 0,0 to 0,2 %.

Concerning toys, the most detailed information available to Eurostat concerns the group of products Games, Toys and Hobbies (Coicop class 09.3.1 an annex sent direct to the Honourable Member and to Parliament's Secretariat details what this covers).

For the Netherlands, the inflation rate for the 12 months ending in November 2002 was 0,6 % for Games, Toys and Hobbies, while the corresponding all items inflation rate was 4,1 %. For Belgium, the inflation rate for Games, Toys and Hobbies was 1,2 % and all-items inflation was 1,6 %. Therefore, in both countries, price increases for this group of products have been below the average for all consumer products.

These comparisons indicate that, while prices for individual toys may have risen substantially, there does not seem to be any exceptional price increase for toys taken as a whole.

(1) See Eurostat news releases No 23/2002 (28 February 2002), No 58/2002 (16 May 2002), and 84/2002 (17 July 2002).