On 5 July 2018, the FCA published a research note, Price discrimination in financial services.
The note sets out a framework for considering the fairness aspects of price discrimination and how best to balance them with economic considerations.
The note concludes by stating:
“Price discrimination is not in itself an unfair practice. However, many questions are being raised about when and how it is fair. Traditionally, the FCA’s regulatory approach has been focussed more on issues relating to economic efficiency and procedural fairness. We have set out a framework for considering both economic and distributive fairness considerations, focusing on their interaction with one another. The framework should be applied on a market-by-market basis. If harm is identified, it will be necessary to determine whether it is appropriate to intervene, and, if so, the most appropriate way of remedying the harm. The most appropriate form of any intervention will depend on the specifics of the case.”