31/03/2017.
Despite finding users overall to be satisfied that digital comparison tools (DCTs) enable them to make informed choices and save money, the Competition and Markets Authority (CMA) believes they could do even better and has identified four concerns as the focus of Part 2 of its DCT market study.
The update paper, ‘Digital comparison tools market study’,* reveals that although DCTs such as price comparison websites and smartphone apps are relatively new, users were generally confident in the way they use them. 90% were satisfied with the service they received.
In the past year, 84% of people looking for car insurance used a comparison site, as did 67% of those looking for energy and 52% of those looking for broadband. The CMA survey also found that
- only 11% of recent users believed that sites covered all suppliers in a sector
- 64% of those using a DCT visited more than one site
- 44% of users who did not make purchases as a result of their visit used the information they gained to help negotiate a better deal with their supplier
The 4 areas of concern suggested by Part 1 of the study are whether
- sites could be more transparent – for instance in their market coverage and business models and in their treatment of personal data
- the benefits of DCTs could be increased if suppliers made more information available
- certain practices and contractual arrangements could limit healthy competition between DCTs
- current DCT regulation is effective