Site centre of price probe
BY RUKI SAYID PRICE comparison website Comparethemarket.com are at the centre of a probe into claims they hiked the cost of home insurance.
The investigation by watchdog the Competition and Markets Authority follows a year-long study into how shoppers use such sites.
Comparethemarket, who feature meerkat characters Aleksandr and Sergei in their advertising campaign, face allegations that they set up deals with insurers which may have inflated the cost of policies.
The so-called “most favoured nation clauses” result in an exclusive contract between an insurance company and the price comparison website, where it is agreed the firm will not offer a better deal to a rival site.
But the CMA fear consumers could end up paying higher home insurance prices SHARES in high street greetings card chain the Card Factory plunged yesterday as they became the latest firm to count the cost of the weak pound.
Around half of what the company buy is priced by the dollar, which has strengthened against sterling as a result. Their report found most consumers had used a price comparison site at least once, and nine out of 10 were “fairly satisfied” with the service provided. But CMA chief executive Andrea Coscelli said there was room for improvement. While they did not name Comparethemarket as the firm being probed, the site said in a statement: “Comparethemarket.com 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.” Consumer watchdog Which? said: “All regulators must ensure businesses abide by the rules and customers get good outcomes, or take action.” since last year’s Brexit referendum result.
The impact of that, plus higher wage costs, saw profits tumble 14 per cent to £23million in the six months to August. The firm’s share price dived as bosses warned the double whammy was set to continue. It came despite the firm’s revenue for the six months to July 31 rising 6.1 per cent to £179million.
The company, who have 895 stores and a website, also announced a special dividend worth 15p a share as they dished out excess cash. Oil RSA RBS J Sainsbury SSE Severn Trent Serco Sports Direct Shell Sky Smith & Nephew Smith WH Stagecoach 625.0 261.8 237.9 1416.0 2184.0 116.0 407.3 2278.0 917.5 1314.0 2022.0 163.5 +6.0 +0.4 +2.9 -9.0 -12.0 -0.2 -12.2 +18.5 -4.5 -12.0 -3.0 +3.2