Review of supply side remedies - the role of supply side remedies in improving consumer outcomes
Citizens Advice commissioned PA Consulting to review whether regulators should attempt to control firms’ pricing behaviour as a way of addressing longstanding consumer problems like the loyalty penalty. The review found:
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Supply-side remedies can deliver immediate improvements for consumers experiencing harm
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Regulators are right to be cautious about potential negative impacts of supply side remedies. However, these concerns can be mitigated through careful diagnosis of the problem and effective design.
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Regulators may be able to overcome uncertainties about the impact of supply-side remedies by harnessing data and technology.
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Continuous monitoring and evaluation are essential for effective policy design and regulators should formally share lessons learned.
The full review can be read here [ 2.1 mb].