Brits ripped off by big brands

FAMILIES in Britain are being exploited by Europe's biggest brands. A damning survey by the European Commission has found overcharging of up to 80% in this country.

Prices across Europe vary wildly despite the so-called single market. But pro-euro claims that the single currency would benefit shoppers have also been proved false.

The study looked at 11 grocery products from brands such as Heinz, Mars, Coca-Cola and Nescafe. It found Sweden and Britain to be the most expensive places to shop, while Spain and Holland are the cheapest.

UK consumers pay 70% more than those in Spain or Portugal for a tube of Colgate toothpaste, and 80% more than French shoppers for Nivea shaving foam.

Prices can differ for a range of reasons, including local competition, wage differences and charges for tax and transport. But the report suggests that some companies are using these huge variations as an excuse to rip off consumers.

On Sunday night, a Commission spokesman said: 'The companies would claim that their overheads and costs mean they cannot compete euro for euro and pound for pound with nations where the environment is more favourable. The report exposes the fact that companies are using differences in the market to charge more and that will concern consumers.'

The researchers compared prices for groceries including and excluding VAT. Britain comes out as the second most expensive nation behind Sweden when VAT is excluded from the cost of everyday grocery shopping. It does better when VAT is included, coming out as the fifth most expensive nation. This reflects the low tax environment in the UK compared with other countries. But even with VAT included, British shoppers still pay the highest prices for many goods.

Expensive groceries are not the only way in which Britons are being ripped off. Earlier this month a survey by American Express showed that consumers in the UK pay huge mark-ups on long-haul flights compared to those in other European countries. Other surveys have shown that British families pay far more for cars, DVDs and brand-name clothes.

The Consumers' Association is urging people to move their current accounts from big banks which offer poor value. A spokesman for the association, Emma Harrison, said: 'The Commission survey indicates what many people have been saying, that the single marketis not working for consumers. It's time that a stance was taken against these rip-off prices.'

The report also raises doubts about the much-boasted benefit of the euro bringing price transparency. This was supposed to allow consumers to compare prices across the EU. Pro-euro campaigners said it would force firms to cut prices in more expensive countries. But many argue that prices have actually gone up as firms take advantage of confusion over the new currency.

Massive price differences exist across the eurozone. For example, Heinz tomato ketchup costs more than twice as much in Italy as in Germany, while Finns pay four times as much as the French for a bottle of Evian water. The Commission argues that it is too early for price convergence to show any real benefit. Tory MP John Bercow said: 'This blows a hole in the claim that the euro will bring price transparency. Yet another myth propagated by the euro fanatics has been exploded.'