Shop around for cheapest comparison site prices, users urged
Survey finds deals vary on websites, as Comparethemarket faces investigation
CONSUMERS are being warned by competition watchdogs about using price comparison websites, as Comparethemarket.com is investigated over the price of some insurance policies.
Following a year-long inquiry into comparison sites, the Competition and Markets Authority (CMA) has for the first time advised consumers that they should avoid relying on just one site to find the best deal. To ensure they are getting the cheapest prices they should check several sites before buying products, it said. This is because most sites do not show customers 100 per cent of the deals available on the market, meaning the cheapest option on one site may be dearer than the cheapest shown on another.
Although most websites were found to be working well, the watchdog said it had particular concerns over one site, which was offering deals which it said may be leading to unfairly high prices and potentially be in breach of competition law.
The Daily Telegraph has established that the company being investigated is Comparethemarket.com.
The CMA has opened an investigation into how the comparison site has set up its contracts with insurers, because it suspects this may result in higher home insurance prices.
A spokesman at Comparethemarket.com said: “We welcome the CMA’S conclusions that digital comparison tools are a force for good which lower prices for consumers and inject competition into markets.
“We operate some simple contractual arrangements with home insurers to ensure that our customers always get the lowest available price. We welcome the opportunity to discuss this further with the CMA.”
The watchdog launched its investigation into the fastgrowing industry last September, amid concerns that sites were promoting certain deals higher than others and therefore limiting competition. The CMA has also laid down clear ground rules for all sites on issues such as communicating how they plan to use people’s personal data, and clearly displaying information such as price and product description.
Andrea Coscelli, CMA chief executive, said: “Our study has found that most people in the UK have used a comparison site at least once, so it is vital that everyone gets the benefits they deserve. The good news is that more than 90 per cent of the people we surveyed were very or fairly satisfied with the sites they used.
“But we have also found that improvements are needed to help people get even better deals. We have set out ground rules for how sites should behave, as well as being clear on how regulators can ensure people have a better experience online.
“We are also taking enforcement action where we suspect the law may have been broken.”
‘Our study has found that most people in the UK have used a site at least once’