Compare The Market investigated for 'denying' customers the best prices
The Competition and Markets Authority says Compare the Market’s deals might actually lead to higher premiums.
The Competition and Markets Authority (CMA) is investigating Compare the Market. They believe some clauses in the website's contracts could stop home insurers getting lower prices on rival websites and platforms.
Here at A Spokesman Said we will always endeavour to offer our customers the very best deals, however the CMA are suggesting that the same can't be said about Compare the Market.
The CMA has provisionally found that the so-called ‘most favoured nation’ clauses could be meaning customers miss out on better home insurance prices.
This happens when these clauses stop rival comparison websites and other platforms from trying to take home insurance customers from Compare the Market. This also means home insurers are more likely to pay high commissions to comparison sites.
These extra costs are then passed on to customers, meaning people buying home insurance could be missing out on cheaper premiums.
The CMA has issued a ‘statement of objections’ to Compare the Market, which lays out its view that the contracts might break competition law.
The CMA Chief Executive, Andrea Coscelli, said: ‘Over 20 million UK households have home insurance and more than 60% of new policies are found on price comparison sites. Therefore it’s crucial that these companies are able to offer customers their best possible deals.'
'Our investigation has provisionally found that Compare the Market has broken the law by preventing home insurers from offering lower prices elsewhere. This could result in people paying high premiums than they need to.’
At A Spokesman Said, we do not use ‘most favoured nation’ clauses, and will always aim to offer you the best deals directly.
Here at A Spokesman Said we love fighting for your rights and believe passionately in natural justice.
But these battles cost us money. You could help us fund these fights by using our price comparison site, A Spokesman Said for your energy, car insurance and household bills.
We’re just the same as Go Compare or any other price comparison site, so you won’t be losing out in any way - by helping us, you will be helping yourself.
Thank you for your support.
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