CMA mulls comparison website and price cap for vets
The CMA is considering a price cap on prescription fees and a price comparison website for vets following an investigation into the industry.
The Competition and Markets Authority (CMA) is considering a price cap on prescription fees and a price comparison website for vets following an investigation into the veterinary services industry.
The watchdog, which recently considered ending Aldi and Lidl’s exemption from land rules, set out 28 potential measures it could impose on Thursday if its 18-month enquiry determines that competition is not working well.
It comes after a prior initial review of the market by the government department led to an “unprecedented” 56,000 responses from workers in the industry and pet owners.
The responses came amid fears that pet owners could be overpaying for medicines and that prices and ownership lacked transparency, with issues including high markups on medicines.
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The potential measures considered in the CMA’s 162-page working paper led to a rise in CVS Group shares, with Pets at Home also seeing a smaller increase.
Additionally, the CMA is considering requiring vet companies to publish more information for pet owners, such as lists of services offered, prices for services and treatments, ownership links and measures of quality.
The regulator could also set up a comparison website for practices and stop companies from having targets which limit the “clinical freedom” of vets.
Additional potential measures could include needing vets to provide prescriptions for medications used at home, a cap on prescription fees, a temporary freeze on medicine prices, and a new regulatory framework overseeing vet firms and non-vets working for practices.
The watchdog is planning to consult with sector and other stakeholders and to come to a provisional decision over the summer ahead of a final decision in November.
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