Currently, the advertising and labelling of infant formula is strictly regulated. For example, advertisement and promotion, including price reductions or deals, is restricted so as not to discourage breastfeeding. Parents also can’t use gift cards or loyalty points to buy formula.
But the Competition and Markets Authority (CMA) found that parents on lower incomes are disproportionately affected due to higher rates of formula feeding. Worryingly, some brands cost more than the weekly value of people’s benefits, leading some parents to forgo food in order to feed their baby.
The watchdog said baby milk brands often provide hospitals with formula below cost, because once parents start using a brand, they tend to stick with it.
Many parents actively choose a more expensive product, assuming this means better quality. However, NHS advice makes clear that: “It does not matter which brand you choose, they’ll all meet your baby’s nutritional needs, regardless of price”.
Regulation states that the labelling and presentation of infant and follow-on formulas should be “clearly distinct”. Despite this, the CMA found that manufacturers use similar branding and labelling – including similar colour palettes, fonts and imagery – across infant and follow-on formulas.
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When combined with large marketing budgets, this approach indirectly supports the sale of infant formula, with CMA evidence indicating that parents are disproportionately influenced by such branding practices.
On pricing, differences between brands can have a sizeable impact on parents’ finances. Evidence reviewed by the CMA shows that they could make a saving of around £300 during a baby’s first year of life by switching from a popular mid-priced product to a low-priced brand.
An interim report published by the CMA in November found that manufacturers appear to signal the superiority of their products in ways that are difficult for parents to meaningfully assess.
What has the CMA recommended?
The watchdog’s final recommendations include:
- Standardised packaging in hospitals
- Providing clear information to parents in healthcare and retail settings on the nutritional sufficiency of all infant formula
- Making it easier to compare prices of different brands
- Extending the ban on advertising to include follow-on formula
- Allowing parents to use vouchers and loyalty points to buy infant formula
Sarah Cardell, chief executive of the CMA, said: “Governments across the UK are committed to the tight regulation of infant formula for public health reasons. So, our proposals are designed to help parents make the best choices for them and their babies, with access to better information, while sharpening the effectiveness of the existing rules.
“Our proposals will also make it easier for regulations to be properly enforced, while ensuring manufacturers and retailers can be more confident in what they can and can’t do according to law.
“We strongly encourage Governments to act on the recommendations to stop well-intended regulation driving poor outcomes for consumers. We’re ready to help implement the changes and support thinking around further measures, including removing the ban on price promotions, should Governments consider it necessary at a later stage.”
