Pet owners are at risk of being overcharged by vets, says regulator
VETS are facing an in-depth investigation into how much they charge pet owners over “multiple concerns” that customers are getting a bad deal.
The Competition & Markets Authority (CMA) said yesterday it would launch an investigation into the vet sector after inquiries found evidence that the market wasn’t working properly.
There is evidence that customers are not getting enough information on prices to allow them to shop around and fears pet owners are overpaying for medicines. The CMA flagged in
September that prices for pet care had risen faster than the rate of inflation.
The CMA is also concerned that the market is dominated by just a handful of large vet groups, which it worries may harm competition.
An investigation could pave the way for the competition watchdog to order vets to make changes, such as providing more information, imposing price limits on prescriptions or ordering businesses to sell certain assets.
Sarah Cardell, chief executive of the CMA, said: “Our review has identified multiple concerns with the market that we think should be investigated further. “These include pet owners finding it difficult to access basic information like price lists and prescription costs – and potentially overpaying for medicines.
“We are also concerned about weak competition in some areas, driven in part by sector consolidation, and the incentives for large corporate groups to act in ways which may reduce competition and choice.”
In 2013 89pc of vets were independent but that proportion dropped to just 45pc by 2021 after a wave of dealmaking in the industry. Private equity has been particularly active in the sector, sparking fears that vets will
become more financially motivated potentially at the expense of market coverage and customer outcomes.
Shares in the listed vet group CVS, which runs 500 veterinary practices across the UK, the Netherlands, Australia and Ireland, plunged by more than 19pc on the prospect of an industry clampdown.
Shares in Pets at Home, which runs its own vets as well as selling pet food and accessories, fell by almost 3pc.
CVS said it had put forward “a package of possible remedies” to address competition fears and “continues to believe this package could be adopted across the market and could address the CMA’S concerns more quickly than an 18-month investigation”.
A spokesman for Pets At Home said the company was “incredibly disappointed” by the CMA’S decision. They said: “While 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.”
Pet ownership has grown in Britain over recent years, with more than half of adults currently owning a pet: 29pc own a dog, 24pc own a cat, and 2pc own a rabbit, according to vet charity PDSA.