Shares in vet chain CVS Group (AIM:CVSG) and retailer-and-vet Pets at Home Group PLC (LSE:PETS) rose over 4% after the UK competition watchdog proposed a package of 21 measures aimed at overhauling the market to improve transparency, consumer choice and reduce costs.
The proposals in the report were branded "pretty tame" by analysts.
The Competition and Markets Authority said the provisional findings of its investigation identified concerns that pet owners often lack information about prices, treatments, and whether their local practice is independently owned or part of a larger corporate group, like CVS and Pets at Home.
The CMA also found consumers are paying significantly more for medicines and services than necessary, with average vet prices rising 63% between 2016 and 2023.
Proposals include requiring vet businesses to publish comprehensive price lists, be clear if they are part of a large group, and make sure that their policies and processes allow vets to act in the best interests of pets and pet owners
It proposed capped fees for written prescriptions at £16, automatic written prescriptions for frequently used medicines, and itemised quotes for treatments over £500.
The CMA also recommends a new price comparison website and updates to the regulatory framework, which currently only applies to individual professionals, not businesses.
Martin Coleman, chair of the inquiry group, said: "Pet owners are often left in the dark, not knowing whether their practice is independent or part of a chain or what a fair price looks like.
"They are sometimes committing to expensive treatment without understanding the price in advance. And they do not always feel confident asking for a prescription or buying medicine online - even when it could save them hundreds of pounds."
The CMA said its final decision will be published by March 2026. Some changes could be implemented before the end of that year, with smaller vet businesses allowed more time to comply.
Analyst Seb Jantet at Panmure Liberum said: "We’ve had a quick scan through and at first glance it all looks pretty tame in our view."
** UPDASTE: Adds share prices, broker comment **