Pet owners could be over paying for medicine or prescriptions due to failures in the veterinary sector, the Competition and Markets Authority (CMA) has warned, as it launched a formal market investigation.
Among the issues, the CMA found consumers may not be given basic information like price lists and prescription costs, and are not always informed of the cost of treatment before agreeing to it.
We’ve highlighted a number of potential concerns in the #vets market, following our initial review into the sector.
That’s why we’re proposing to launch a formal market investigation.
Read more: https://t.co/Q0d8Mw9K5G pic.twitter.com/hfTsttUl13
— Competition & Markets Authority (@CMAgovUK) March 12, 2024
In response to the findings, a Pets at Home spokesperson said: “We are incredibly disappointed the CMA’s findings today do not fully reflect our unique business model of locally-owned vet practices.”
“Whilst our brand is national, our veterinary practices are led by individual entrepreneurial vets who have clinical and operational freedom. They choose all pricing, products and services to ensure the best care for clients and their much-loved pets in their local area, which promotes competition in the market and helps to keep prices low.”
If a formal investigation upholds its findings, it would give the CMA the power to force companies to provide consumers with a full set of information about its business and prices, as well as imposing limits on prices including prescription fees, and potentially even enforcing the sale of certain businesses.
“We have heard concerns from those working in the sector about the pressures they face, including acute staff shortages, and the impact this has on individuals,” CMA boss Sarah Cardell said.
“But, our review has identified multiple concerns with the market that we think should be investigated further.”
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It also identified concerns about weak competition in some areas, due to concentrated local markets and incentives for large corporate groups to act in ways which may reduce choice for consumers.
Pets at Home is among just six companies which own 1,500 of the UK’s 5,000 veterinary practices.
Approximately 45,000 members of the public responded to the CMA’s call for input, alongside 11,000 workers from the industry.
“The unprecedented response we received from the public and veterinary professionals shows the strength of feeling on this issue,” Cardell added.
“We have provisionally decided to launch a market investigation because that’s the quickest route to enable us to take direct action if needed.”
The Pets at Home spokesperson added: “We have been working closely with the CMA on their areas of concern and will continue to do so as their inquiry progresses to ensure the distinctiveness of our model is fully recognised.”
Pets at Home shares slipped 6.6% in early trading.
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