Comparison websites face honesty probe

THE competition watchdog is investigating comparison websites amid fears they cannot be trusted to show the best deals.

The Competition and Markets Authority will look at concerns that millions of users have little idea how the sites make money.

Insurers and utility firms make generous payments to websites such as MoneySuperMarket and GoCompare if customers use them to buy the firms’ services.

The websites show deals only from firms with which they have a commercial link, so consumers often do not get the best option.

Andrea Coscelli, of the Government-backed CMA, said such sites ‘helped to inject significant competition into a number of markets’ but there are concerns over ‘whether consumers can trust the information that’s available’.

The sites admit making commission, but will not say how much.

Insiders suggest it is roughly £50 for each car insurance policy and anywhere from £40 to £80 when customers change energy tariff.

James Daley, of consumer advisers Fairer Finance, said the sites made ‘excessive’ commission and were often too focused on price.