Baby formula prices pushed up by strict advert rules, regulator warns

Advertising rules for baby formula are pushing up costs for struggling parents in the UK, a competition watchdog has found.

Over the past two years, infant formula prices have soared above inflation, bringing the cost of feeding a 10-week-old up to £89 per month.

In shops, security tags have appeared on basic items such as cheese, butter and baby milk as some Brits – worn down by the cost of living crisis – resort to stealing the products.

Parents have also gone without meals, watered down formula or engaged in risky ‘formula foraging’ to try and feed their child.

Sign the Formula For Change petition here

Now, the Competition and Markets Authority has said their investigation revealed baby formula companies are restricted from promoting price reductions, which ‘has the effect of softening competition on price.’

Though they don’t plan to ‘deepen’ the investigation, they’ve made recommendations to the government to help reform the market and help struggling parents.

Parents and carers are not given correct information to make ‘well-informed’ purchasing decisions – meaning many don’t switch to cheaper options, which could save parents more than £500 during the first year of a child’s life.

Price competition in the baby formula market, overwhelmingly dominated by Danone, which owns Aptamil, is weak.

CMA said though all baby formulas must meet similar compositional requirements, some manufacturers were able to better ‘raise brand awareness and influence choices’.

They said: ‘As well as a lack of switching by existing customers, those who are choosing an infant formula brand for the first time are generally not choosing cheaper options as prices have risen.’

It’s the latest development as parents continue to struggle to afford to feed their babies.

Metro’s Formula for Change campaign, in partnership with the family support charity Feed, has sought to change that since launching last year by demanding the government introduce new legislation so cash-strapped families can afford to feed their families. 

Customers in supermarkets can use loyalty points and store gift vouchers to purchase the likes of alcohol, pet food and energy drinks, baby formula cannot be bought this way, however desperately it is needed.

In the lead-up to the election, Labour’s Keir Starmer and Wes Streeting both promised to tackle the issue.

Mr Streeting told Metro: ‘We will not stand by while outdated restrictions have a damaging impact on those struggling to make ends meet’, while Sir Keir told the Big Issue: ‘We’d [Labour] also change the rules so people could use food bank vouchers and loyalty card points to buy baby formula.’

In Britain, there are strict infant formula laws which limit how it can be made, marketed, sold and bought. However, some supermarket chains have nevertheless slashed prices or offered discounted details – despite the fact doing so is technically breaking the law.

Richard Walker, executive chairman of Iceland, is among those who have done so. The businessman has been a vocal supporter of the Formula for Change campaign since its infancy. 

Mr Walker told Metro: ‘This is an historic moment for our country and a chance to finally listen to the millions of families supporting Formula for Change. 

‘I fully support Metro in calling on the new Government to act as soon as possible.’

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