Legislation Backed : Discount Store Can Save Shopper 30%, Group Says
A coalition of consumer groups, supporting legislation that they contend will preserve deep discount pricing on retail goods, released a survey Thursday intended to bolster their case.
The survey shows that Los Angeles consumers who shop at discount stores can save an average of 30% from the highest prices found on popular summer items ranging from suntan lotion to charcoal. In San Diego, the average savings were 24%, while nationally the average was 23%. San Diego and Los Angeles were the only California cities surveyed.
“A consumer who does shop around can save substantially,” said Deborah Bruns, associate director of the California Public Interest Research Group, one of 11 organizations nationwide conducting the informal survey of prices on 12 common summer items among retailers in 14 cities. “Some consumers may choose to pay full price . . . but not all can afford that.”
Bill Negates Ruling
Those savings may be eroded somewhat if the Reagan Administration vetoes legislation pending in Congress, the groups argue. The legislation would overturn a Supreme Court ruling in May that, the consumer groups contend, will lead to higher prices for retail goods.
The controversial ruling allowed manufacturers to halt supplying their goods to retailers that slash prices but don’t provide full service to customers. Such practices do not constitute illegal price fixing, the ruling said. Before, any such move to drop price-cutting retailers that don’t charge “suggested retail prices” was viewed as a price-fixing conspiracy in violation of antitrust laws.
A bill passed by the House last November, sponsored by Reps. Henry J. Hyde (R-Ill.) and Peter W. Rodino Jr. (D-N.J.), would negate the Supreme Court ruling. A similar bill in the Senate, sponsored by Sens. Howard M. Metzenbaum (D-Ohio) and Warren B. Rudman (R-N.H.), is awaiting a floor vote.
However, the Reagan Administration has threatened to veto either bill. Administration officials and manufacturers deny that the Supreme Court ruling will necessarily lead to higher consumer prices. They contend that many manufacturers will still continue to use discounters because they often sell more merchandise.
Small Firms Affected
The survey, conducted June 6-15, showed that the biggest savings in Los Angeles (43%) were on Kingsford charcoal, followed by the Toro home duty weeder-trimmer (38%) and the Milton Bradley Twister game (38%).
It did not, however, attempt to show how much those discounts might be eroded if the Supreme Court ruling were not negated.
“I don’t think discounters will disappear from the face of earth,” Bruns conceded.
But, she contended, small discounters may be squeezed out by manufacturers because of complaints from larger, higher-priced retailers.
Retailers surveyed in Southern California included such firms as Thrifty Drug, Crown Books, Oshman’s Sporting Goods, the Gap and Robinson’s, as well as small mom-and-pop stores, the California Public Interest Research Group’s Bruns said.
Other consumer groups participating in the survey included local organizations in such states as Florida, Rhode Island, Oregon, Kansas and West Virginia.
SAVING ON THE PRICE OF SUMMER
Results of a national price survey of popular summer goods by the California Public Interest Research Group and other consumer groups. Low is the lowest price found at a store; high is the highest price found. Savings is the difference between them.
Item Los Angeles Nation Kodak Kodacolor film Low: $2.99 Savings: 28% VR-G ASA 100 High: $3.50 (24 exposures) Savings: 15% Penn tennis balls Low: $1.89 Savings: 26% Championship Hardcourt High: $1.99 (package of three) Savings: 5% Turtle Wax car wax Low: $3.69 Savings: 21% Super Hard Shell High: $5.29 (16 ounces) Savings: 30% Weber One-Touch Low: $69.99 Savings: 28% barbecue grill High: $99.99 (22 1/2 inches, black) Savings: 30% Toro Home-Duty Low: $24.95 Savings: 27% Weeder-Trimmer High: $39.99 (910 electric) Savings: 38% Twister, a game Low: $9.99 Savings: 21% by Milton Bradley High: $16.00 Savings: 38% Igloo Playmate Low: $14.99 Savings: 26% ice chest High: $18.95 (16 quart) Savings: 21% Wham-O Low: $5.99 Savings: 20% World Class Frisbee High: $8.00 (165 grams) Savings: 25% Kingsford charcoal Low: $3.99 Savings: 19% (20 lb. bag) High: $6.99 Savings: 43% The Tommyknockers Low: $15.96 Savings: 19% hard-cover book High: $19.95 by Stephen King Savings: 20% Coppertone Low: $5.09 Savings: 17% Sunscreen 6 High: $5.45 (4 fluid ounces) Savings: 7%
