Watchdogs Urged to Tackle Rip-Off Bills Affecting Consumers and the Economy
Economists Andrew Sissons and John Springford highlight how weak competition and regulatory failures across key services markets—such as energy, telecoms, insurance, and personal finance—are harming consumers and undermining productivity.
Consumer detriment largely stems from information asymmetry, complex tariffs, and difficulty comparing products, resulting in opaque bills and pricing structures that disadvantage users. A particular concern is the widespread use of RPI-plus contracts, which routinely raise prices above the Retail Prices Index, prompting calls for regulators to restrict their deployment.
Proposed measures to address these issues include banning or limiting auto-renewing contracts, except for essential services like car insurance, improving online cancellation mechanisms for digital subscriptions, and introducing standardised, 'plain vanilla' products to facilitate easier consumer comparison.
The economists argue that regulators require better funding and a more interventionist approach to improve competition and rein in unfair billing practices. This call stands in contrast to Labour's evolving cost-of-living agenda under Rachel Reeves, who has signalled intentions to reduce regulatory barriers. While Reeves advocates deregulation, the economists urge reinforcing regulatory frameworks to enhance consumer outcomes and economic efficiency.
