Following a super-complaint by the Citizens Advice bureau, the CMA has announced that it is seeking views on concerns about long term customers paying more for goods and services.
The CMA has identified four key issues to which it invites responses by 14 October 2018:
- the existence, impact and root causes of a ‘loyalty penalty’ for consumers across markets, including savings accounts, home insurance, mortgages, mobile and broadband;
- circumstances in which a ‘loyalty penalty’ may not be problematic at all, or where it is particularly problematic;
- specific additional challenges faced by vulnerable customers, and whether there should be any additional protections; and
- possible measures to tackle any ‘loyalty penalty’.
This news follows the FCA’s recent discussion paper on price discrimination in the cash savings market, which addressed similar concerns in relation to certain savings account products.