The UK’s competition regulator has launched an investigation into the high prices charged for infant formula.
An earlier study found that average prices had gone up by 25% in just two years, increasing manufacturers’ profit margins during the cost-of-living crisis.
Buying cheaper infant formula options could save families more than £500 over the first year of a baby’s life.
With the formal launch of a market study, the Competition and Markets Authority (CMA) has legal powers to require companies to hand over information, rather than rely on them providing information voluntarily.
The regulator plans to gather evidence on consumer behaviour, the role of regulation in the market, and features of the formula market such as barriers to entry.
It will then consider what action could be taken to address any problems identified, such as new regulations on how formula can be marketed, or information given to parents about formula brands.
CMA chief executive Sarah Cardell said that although prices of some products have fallen in recent months, they remain at “historically high levels”.
“We’re concerned that parents don’t always have the right information to make informed choices and that suppliers may not have strong incentives to offer infant formula at competitive prices.”
A final report is due to be published in September.
