Uswitch comments on CMA’s loyalty penalty announcement

Richard Neudegg, head of regulation at Uswitch.com, says: “It’s not news that loyalty doesn’t pay – it has always been true that consumers who are willing to shop around get a better deal than those who don’t. While this is an essential process as it forces providers to up their game, through lower prices and better services, we need to make sure those who need the most help aren’t left behind.

“We know that the better deals are often found by switching provider. But many companies make this more difficult by not being transparent enough about the options available or how to take your custom elsewhere. We are pleased to see the CMA identify this as an area for improvement, to ensure the power to get better deals is placed firmly in the hands of consumers.

“For those unable to take advantage of competition, regulators should consider whether a greater degree of protection should be in place. One size doesn’t fit all, so action has to be targeted to the particular problems faced by vulnerable customers in the different markets.

“It’s right for the CMA to initially place the focus onto the individual industry regulators to look into these issues more deeply – where lot of work is already underway – as each one faces different challenges. It’s important to maintain competition to drive up service and drive down prices, while protecting the vulnerable.”