Tag: pricing

Vets should publish prices, says competition watchdog

Major reforms would require vet businesses to make ‘fundamental changes’ to the way they support pet owners

The Competition and Markets Authority (CMA) has today published the provisional decision in its market investigation into the UK’s £6.3 billion veterinary services market.

  • Proposals to transform consumer experience will lead to more choice and savings. 
  • Twenty-one measures proposed, including better information on prices, treatments, medicines and ownership, a price cap on written prescriptions and a new comprehensive price comparison website.
  • Current regulatory system not fit for purpose and must be modernised to keep pace with commercial practice and ensure pet owners are protected.

CMA Provisional Finding

The market investigation – which is principally into vet businesses, not individual vets – identifies concerns, including that pet owners:

  • are often unaware of the prices of commonly used services and whether their local practices are part of large national chains
  • have no effective way of comparing vet prices when they get a pet or move areas
  • may be paying twice as much for commonly prescribed medicines from vet practices than they could pay online, amounting to hundreds of pounds more than they need to pay
  • often receive no written estimate for courses of treatment running to hundreds – or even thousands – of pounds
  • are often unable to tell if they are getting good value for money from pet care plans
  • may be overpaying for individual cremations often have no effective means of complaining when things go wrong

These factors are market wide and mean consumers do not benefit from strong competition between vet businesses. Average vet prices across the market rose by 63% between 2016 and 2023 – well above the rate of inflation.

The CMA also found that pet owners pay 16.6% more on average at large vet groups than at independent vets. For at least 3 of those large groups, average prices increased faster at practices they bought than at practices that remained independent. For a substantial part of the market as a whole, profits are much higher than they should be if competition was working well.

In addition, the CMA has found that the current regulatory system is not fit for purpose. It only regulates individual veterinary professionals and not vet businesses, despite the majority of practices being part of a large corporate group.

Given its market-wide concerns, the CMA’s independent expert inquiry group has provisionally decided that a far-reaching package of 21 measures is required to address the above concerns and reinvigorate competition in this market.  

Martin Coleman, Chair of the Inquiry Group, said: “Pet owners are often left in the dark, not knowing whether their practice is independent or part of a chain or what a fair price looks like.

“They are sometimes committing to expensive treatment without understanding the price in advance. And they do not always feel confident asking for a prescription or buying medicine online – even when it could save them hundreds of pounds.

“Even where pet owners could access some of this information, it is difficult for them to compare prices and services – despite the fact that, in most of the country, there are several local practices they could choose between.

“We are proposing major reforms aimed at bringing about a transformation in the experience of pet owners and empowering them to make the best choices for their circumstances.

“We believe that our proposals would enable pet owners to choose the right vet, the right treatment, and the right way to purchase medicine – without confusion or unnecessary cost.”

CMA’s proposed remedies

The CMA is today proposing a wide-ranging set of remedies to address these issues, including:

  • Requiring vet businesses to publish comprehensive price lists, be clear if they are part of a large group, and make sure that their policies and processes allow vets to act in the best interests of pets and pet owners. These measures will give pet owners the information they need to choose the right practice and treatment options for them.
  • Making it easier for pet owners to access cheaper medicines online, including by requiring vets to tell pet owners about savings they make by buying medicines online and, where a medicine is likely to be needed frequently, automatically providing a written prescription to enable the pet owner to purchase the medicine elsewhere (unless the pet owner chooses otherwise), and capping the price of providing prescriptions at £16. These measures will help prompt consumers to consider buying medication online and protect them from having to pay excessive prices for the prescriptions they would need to do so.
  • Requiring vets to give pet owners clear price information when they are choosing a treatment, with prices in writing for treatments over £500 and itemised bills. This will make it easier for consumers to consider different treatment options and providers.
  • Requiring the RCVS to enhance its Find a Vet website to include pricing data drawing on the price lists vets will be required to publish; this data can also be used by third party websites and apps. This will allow consumers to compare vet prices much more effectively, for instance when they first get a pet or move areas.
  • Requiring vets to give clear price information to pet owners arranging a cremation. This is important to allow pet owners to make the best decisions for their circumstances, at an especially emotional time.
  • Requiring vets to give pricing breakdowns for pet care plans. This will allow pet owners to better decide if these would provide good value for money in their own circumstances.
  • Recommending that the government urgently prioritises a new Veterinary Surgeons Act and updates regulation to include veterinary businesses, as well as individual vets and nurses, and give the regulator powers to set and enforce requirements and standards for these businesses. Reform is needed to make sure pet owners’ interests are protected and there is an effective complaints handling route if things go wrong.

The main focus of the inquiry is into veterinary businesses, not individual vets. The CMA is concerned to hear that some vets and vet nurses face abuse from frustrated clients – they deserve respect, not hostility.

The proposed remedies would be good for vets, further enhancing trust in the profession and protecting clinical judgment from undue commercial pressure.

Implementation

The CMA’s final decision will be published by March 2026. The reforms would be implemented through a legally binding CMA Order and could see some measures coming into force before the end of 2026. Small vet businesses will be given additional time for implementation.

Vet businesses can make changes that would benefit their customers in the meantime, and the CMA encourages them to consider doing so.

The CMA fully recognises that the proposed changes would require businesses to adapt systems or make other changes which would incur some administrative costs. The CMA’s provisional view is that the benefits to consumers of these measures would far outweigh the costs to businesses.

Next steps 

The CMA will now consult on the Provisional Decision. All interested parties are welcome to respond to the provisional conclusions by the deadline of Wednesday 12 November 2025 via our consultation page.

For further information, visit the Veterinary services case page, which includes key statistics and the administrative timetable.  

The British Veterinary Association (BVA), which represents more than 19,000 vets across the UK, has responded to the CMA’s ‘provisional decision’ following its market investigation into UK veterinary services for household pets.

The report, published today (Wednesday 15 October), was clear that ‘veterinary professionals work hard, act ethically, and put animal welfare first’.

It also set out 21 measures that it believes will improve ‘information on prices, treatments, medicines and ownership; introduce a price cap on written prescriptions; deliver a new comprehensive price comparison website; and highlights that the current regulatory system is not fit for purpose and must be modernised to keep pace with commercial practice and ensure pet owners are protected.’ 

Responding to the CMA’s provisional decision, British Veterinary Association President Dr. Rob Williams said: “At first glance, there’s lots of positives in the CMA’s provisional decision that both vets and pet owners will welcome, including greater transparency of pricing and practice ownership; reform of the outdated regulatory framework; and support for our calls for regulation of vet businesses. The CMA also recognises that vets and vet teams are highly professional, and ‘work hard, act ethically, and put animal welfare first’.  

“However, we do have concerns that some of the measures outlined will impact how services are delivered.

“In particular, we need clarity on the proposed introduction of comprehensive price lists, because how vet care is delivered is varied and complex and unless the CMA gets this right, it could end up creating greater confusion for consumers, which in turn could have a negative impact on animal welfare.” 

Read the full CMA provisional report here.

Watchdog identifies ‘multiple concerns’ in veterinary industry

The CMA has today published its main concerns following an initial review into the veterinary sector

  • CMA provisionally decides it should launch a formal Market Investigation.
  • Initial review prompts over 56,000 responses from public and vet industry.

The review by the Competition and Markets Authority (CMA) highlights multiple concerns in the market, including:

  • Consumers may not be given enough information to enable them to choose the best veterinary practice or the right treatment for their needs.
  • Concentrated local markets, in part driven by sector consolidation, may be leading to weak competition in some areas.
  • Large corporate groups may have incentives to act in ways which reduce choice and weaken competition.
  • Pet owners might be overpaying for medicines or prescriptions.
  • The regulatory framework is outdated and may no longer be fit for purpose.

The CMA has provisionally decided that it should launch a formal Market Investigation focused on its provisional analysis of the issues in the sector and is now consulting on this proposal.  

A Market Investigation enables the CMA to investigate its concerns in full and to intervene directly in markets if it finds that competition is not working well. Along with compelling those under investigation to provide information, it gives the CMA access to a wide range of legally enforceable remedies, such as mandating the provision of certain information to consumers, imposing maximum prescription fees and ordering the sale or disposal of a business or assets.

Sarah Cardell, Chief Executive of the CMA, said: “We launched our review of the veterinary sector last September because this is a critical market for the UK’s 16 million pet owners. The unprecedented response we received from the public and veterinary professionals shows the strength of feeling on this issue is high and why we were right to look into this.

“We have heard concerns from those working in the sector about the pressures they face, including acute staff shortages, and the impact this has on individual professionals. But 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.

“Given these strong indications of potential concern, it is time to put our work on a formal footing. We have provisionally decided to launch a market investigation because that’s the quickest route to enable us to take direct action, if needed.”

The CMA’s concerns

Based on the evidence gathered so far, the CMA has 5 key concerns that it proposes to investigate further:

Consumers may not be given enough information to enable them to choose the best veterinary practice or the right treatment for their needs.

  • Most vet practices do not display prices on their website – of those practices checked, over 80% had no pricing information online, even for the most basic services. Pet owners tend not to shop around between vet practices and assume prices will be similar, although that is not always the case.
  • People are not always informed of the cost of treatment before agreeing to it – around one fifth of respondents to the  CFI said that they were not provided with any cost information before agreeing to tests, around one in 10 said they were not provided with cost information before their pet had surgery, and around half said they were not informed about costs before agreeing to out of hours treatment.
  • A company can own multiple vet practices in a local area without making that clear – for example, only 4 out of 6 of the largest groups don’t change the name or branding when they take over an independently owned vet practice. This means pet owners are not always comparing competitors when choosing a vet practice.

Concentrated local markets, in part driven by sector consolidation, may be leading to weak competition in some areas.

Market concentration measures how many competitors operate in a particular market – the fewer firms operating in a market, the more concentrated it is.

  • In 2013, around 10% of vet practices belonged to large groups, but that share is now almost 60%, and many of the large groups have expressed an intention to continue expanding their business through acquisition of independently owned practices.
  • To illustrate this another way, since 2013 1,500 of the 5,000 vet practices in the UK have been acquired by the 6 large corporate groups (CVS, IVC, Linnaeus, Medivet, Pets at Home and VetPartners).
  • This may reduce the number of business models in locations where most or all of the first opinion practices are owned by one large corporate group, giving less choice to consumers because they tend to choose practices close to home.

Large integrated groups may have incentives to act in ways which reduce choice and weaken competition.

Given the significant and ongoing growth of large corporate groups, the CMA is concerned that:

  • The large, integrated corporate groups (especially those whose business models include significant investment in advanced equipment) may concentrate on providing more sophisticated, higher cost treatments, meaning that consumers are less able to access simpler, lower cost treatments even if they would prefer that option.
  • To varying extents, the large vet groups have also bought businesses which offer related services such as specialised referral centres, out of hours care, diagnostic labs and/or crematoria. These large groups may have the incentive and ability to keep provision of these related services within the group, potentially leading to reduced choice, higher prices, lower quality and exit of independent competitors.

Pet owners might be overpaying for medicines or prescriptions.

  • Vets must use signs in reception or treatment rooms to tell customers that they can get a prescription for medicine and buy it elsewhere, but the CMA is concerned that these may not be effective. While it can be convenient to buy a medicine directly from the vet as part of a consultation, around 25% of pet owners did not know that getting a prescription filled elsewhere was an option – meaning they are missing out on potential savings, even with the prescription fee.
  • Some vet practices may make up to a quarter of their income selling medicines – so there may be little incentive to make pet owners aware of alternatives.
  • The current regulatory regime may contribute to concerns by restricting veterinary practices’ ability to source cheaper medicines online.

The regulatory framework is outdated and may no longer be fit for purpose.

  • The main regulation in the industry dates from 1966, before non-vets were able to own vet practices. It relates to individual practitioners, not practice owners or vet practices as businesses. This means that the statutory regulator, the RCVS, has limited leverage over the commercial and consumer-facing aspects of veterinary businesses, for example how prices are communicated or whether there is transparency about ownership of vet practices or related services.
  • The RCVS has put in place a Practice Standards Scheme which applies to the vet practice rather than individual vets. Only 69% of eligible practices have signed up to this voluntary scheme, meaning that almost a third of the market has not committed to this approach.
  • The provisional view is that outcomes for consumers could be improved if regulatory requirements and/or elements of best practice could be monitored or enforced more effectively.

Next steps

The CMA has launched a 4-week consultation to seek views from the sector on the proposal to launch a market investigation. The consultation closes on 11 April 2023 at which point it will consider the responses received and a decision will be made on how to proceed.

For further information visit the veterinary services case page. This includes the consultation document which sets out more details and statistics on today’s update.

A response from the British Veterinary Association to follow