Companies involved in the supply of baby formula milk could face direct government action to lower prices unless the way it is sold and marketed improves, consumer watchdog the CMA said today.
In a series of recommendations, the CMA has proposed 'backstop' measures including controls and public provisions that will give the government power to intervene and force prices lower directly if deemed necessary.
French dairy group Danone and Swiss food giant Nestlé dominate the UK's formula market, holding over 80% of the market share.
In its provisional report in May, the CMA said the sector is marked by high margins, limited brand options, and few own-label alternatives.
At that time, the CMA stopped short of a full investigation Into how baby formula milk products are sold and instead promised recommendations for where it wants change.
Published today, the CMA said that in 'healthcare settings', these include reducing the prominence of branding and providing parents with “clear, accurate and impartial information on nutritional sufficiency".
Clear information will also be required in shops where, at the point of sale, the CMA wants price cuts and promotions publicised.
Online advertising regulations will be tightened with approval of packaging to be required before infant formula products are placed on the market.
Labelling and advertising will have to contain more clear accurate and impartial information to help parents choose a brand of infant formula to use
The CMA has asked for feedback on its recommendations by 29 November 2024.