The UK's competition watchdog, the CMA, has proposed significant reforms to improve transparency and competition in the veterinary services market, which is valued at £6.3 billion, due to concerns over pet owners overpaying and lacking treatment and price information.

Proposed measures include requiring vets to publish detailed price lists, disclose affiliations with larger groups, inform clients about cheaper online medicine options, and automatically provide prescriptions for frequent treatments to facilitate online purchases.

The investigation revealed that pet owners pay 16.6% more at large vet groups compared to independent practices, highlighting a notable price disparity and information asymmetry in the market.

While the CMA's provisional recommendations are unlikely to significantly disrupt major operators, industry stakeholders are engaging in ongoing consultations, with a final decision expected in March.

Industry responses include cautious support from companies like CVS Group, which plans to collaborate with the CMA to refine the proposals, though some express concerns about the justification of all measures.

The CMA's reforms are seen as aligning with standard practices in other consumer sectors, and industry groups believe that increased transparency and oversight will ultimately benefit both consumers and large operators.

Experts emphasize that the core issues stem from outdated regulation and lack of transparency, advocating for a comprehensive overhaul of the veterinary regulatory system, including establishing an ombudsman service.

The CMA has proposed updating veterinary regulations through the Veterinary Surgeons Act, inviting responses from firms by 12 November, with a final decision anticipated in March.

Consumer advocates, like Sue Davis from Which?, stress the urgency of implementing these reforms to restore confidence in veterinary services and protect pet owners.

Additional CMA proposals include implementing price caps on medicines and services like cremations, and banning bonuses tied to specific treatments to promote fairer pricing and competition.

The CMA found that higher prices are not justified by better services, and market consolidation into six major companies has not reduced consumer choice but has created information asymmetry.

Following the CMA's proposals, shares of major UK veterinary groups such as Pets at Home and CVS Group rose by over 4%, reflecting investor confidence in the potential market reforms.