Investigation into overcharging in the vet industry
The UK’s competition regulator has said it is launching an investigation into the vet industry over concerns that pet owners could be being overcharged.
With data showing that more than half of all UK households own a pet, veterinary services reach a large proportion of the population. The CMA, which is in charge of tackling unfair behaviour across different industries, launched a review of the UK vet sector in September to look at consumer experiences and vet business practices for household pets.
It was worried that pet owners are not being given easy access to information about pricing and treatment options when deciding which vet to use and which services to buy. It also wanted to find out whether consumers are being affected by the growing influence of large corporate vet groups and concentrated local markets.
Almost 60 percent of vet practices in the UK are owned by large groups, up from about 10 percent a decade ago, and many are continuing to look for ways to expand.
Since 2013, 1500 of the 5000 vet practices in the UK have been acquired by the six large corporate groups: CVS, IVC, Linnaeus, Medivet, Pets at Home and Vet Partners.
In areas where most of the vet practices are owned by one large group, this could limit choice for consumers who tend to choose practices close to home, the regulator said.
It found that about 80 percent of the vet practices it checked do not display prices on their website, even for the most basic services.
Pets At Home, which says it is the UK’s leading pet care business, said it was disappointed by the CMA’s findings because it does not think it reflects its business model based on locallyowned vet practices.
“Whilst our brand is national, our veterinary practices are led by individual entrepreneurial vets who have clinical and operational freedom.” a spokeswoman said
CVS Group saw its share price tumble by nearly a quarter following the news. The vet group said it had engaged “constructively and proactively” with the CMA and had “put forward a package of possible remedies to address its concerns”.