Progress on Tackling the Loyalty Penalty in Essential Markets

This report evaluates the progress made one year after the submission of a super-complaint by Citizens Advice to the Competition and Markets Authority (CMA) regarding the loyalty penalty affecting consumers in five essential markets: mobile, broadband, cash savings, home insurance, and mortgages. It outlines the actions that regulators have planned and the measures expected to be implemented by December 2019 to address the loyalty penalty. The report identifies specific areas where regulators need to take action, such as ensuring mobile providers reduce bills for loyal customers, protecting vulnerable broadband customers from loyalty penalties, and implementing fair pricing policies in the insurance sector. It also emphasizes the need for regulators to accurately measure the loyalty penalty and take decisive action to protect consumers, particularly vulnerable ones, from being overcharged. The report concludes with recommendations for government intervention to restrict unfair pricing practices and enhance regulatory powers to protect consumer interests.