{"id":104192,"date":"2025-02-14T12:00:00","date_gmt":"2025-02-14T12:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=104192"},"modified":"2025-02-14T10:48:09","modified_gmt":"2025-02-14T10:48:09","slug":"cma-targets-baby-formula-industry-new-rules","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/cma-targets-baby-formula-industry-new-rules\/","title":{"rendered":"Cma Targets Baby Formula Industry: New Rules to Curb High Prices and Branding Tactics"},"content":{"rendered":"\n

The UK\u2019s Competition and Markets Authority (CMA)<\/strong> has proposed major reforms to the baby formula market<\/strong>, recommending standardised packaging in hospitals and allowing parents to use loyalty points and gift vouchers to buy formula. <\/p>\n\n\n\n

The regulator\u2019s findings follow a year-long investigation into soaring prices and limited consumer choice, as three companies\u2014Danone, Nestl\u00e9, and Kendal<\/strong>\u2014control over 90% of the market.<\/p>\n\n\n\n

Despite recognising affordability concerns, the CMA<\/a> has opted against imposing a price cap or profit-margin limit, arguing such measures could inadvertently drive prices higher. Instead, it has outlined five measures to improve market transparency and help parents save up to \u00a3300 a year<\/strong> by switching to lower-cost brands.<\/p>\n\n\n\n

Standardised packaging and clearer pricing in shops<\/strong><\/h2>\n\n\n\n

The CMA has recommended that baby formula provided in hospitals<\/strong> should come in unbranded packaging<\/strong>, aiming to reduce the influence of marketing on vulnerable new parents. <\/p>\n\n\n\n

According to the watchdog, many parents <\/a>make long-term brand choices<\/strong> at a moment when they lack clear and impartial information, often assuming that a higher price means better quality.<\/p>\n\n\n\n

\u201cMany parents who need, or choose, to formula feed pick a brand at a vulnerable moment, based on incomplete information,\u201d said Sarah Cardell<\/a><\/strong>, chief executive of the CMA. \u201cThis is despite NHS advice stating that all brands will meet your baby\u2019s nutritional needs, regardless of brand or price.\u201d<\/p>\n\n\n\n

Beyond hospitals, the CMA proposes displaying all formula brands together in retail settings to make price comparisons easier<\/strong>. <\/p>\n\n\n\n

According to its research, manufacturers raised prices by up to 36% in two years<\/strong> during the UK\u2019s cost of living crisis, while also increasing profit margins. By highlighting affordability<\/strong> and reinforcing that all formula meets the same nutritional standards, the CMA hopes to encourage more price-conscious decision-making.<\/p>\n\n\n\n

No price cap but tougher restrictions on advertising<\/strong><\/h2>\n\n\n\n

While consumer groups had called for a price cap<\/strong> on formula products, the CMA ruled out the measure, citing \u201csignificant risks.\u201d According to the regulator, such a cap could push cheaper products closer to the price ceiling<\/strong>, reducing affordability for low-income families.<\/p>\n\n\n\n

However, it suggested that the government could reconsider a cap<\/strong> if its proposed reforms fail to improve affordability.<\/p>\n\n\n\n

The watchdog has also recommended extending advertising restrictions<\/strong> to follow-on milk for older babies. Current UK <\/strong>regulations<\/strong><\/strong> <\/a>already prohibit formula advertising and in-store discounts to prevent discouraging breastfeeding, but follow-on milk\u2014marketed for babies over six months\u2014remains widely promoted.\u00a0<\/p>\n\n\n\n

The CMA argues that limiting these promotions<\/strong> could prevent misleading marketing tactics that influence parental choices.<\/p>\n","protected":false},"excerpt":{"rendered":"

The CMA has unveiled a bold plan to shake up the baby formula market, pushing for standardised hospital packaging and clearer pricing in shops. With prices soaring by up to 36%, parents are being steered toward expensive brands at their most vulnerable moment. The regulator believes its reforms could help families save hundreds a year, but key protections\u2014like a price cap\u2014won\u2019t be enforced.<\/p>\n","protected":false},"author":10,"featured_media":104210,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-104192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/104192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=104192"}],"version-history":[{"count":3,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/104192\/revisions"}],"predecessor-version":[{"id":104204,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/104192\/revisions\/104204"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/104210"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=104192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=104192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=104192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}