Another solution is to promote greater transparency. Citizens Advise suggested that the mortgage market should change the name of ‘standard variable rate’ to ‘expired rate’ (Citizens Advice, 2017). This alerts consumers that their discounted rate has ended, and they are now going to be charged at a higher level. Greater transparency is likely to incentivise obdurate customers to look for better deals as the asymmetry of information is mitigated.

The CMA also suggested that firms should also be held publicly accountable for their exploitative techniques (CMA, 2018). For example, Ofcom launched the ‘Boost Your Broadband’ website advising customers on the best broadband deals they can get in their area (Ofcom, 2018). The rise of price comparison websites, and campaigns to inform consumers are also useful. Ofgem’s collective switch trial saw the switching rate increase from 2.6% to 22.4% when households were notified that they were overpaying for their services (Ofgem, 2018).

The market setting in these industries moves away from a Bertrand style competition, as profit-thirsty firms inevitably look to exploit customers (Waterson, 2003). Customers, on the other hand, tend to be ignorant of this behaviour, unless it is strongly flagged. With active involvement from the CMA and industry regulators, methods such as price capping and informing customers have seen remarkable improvements in protecting consumer interests. Whilst they should continue to change guide consumer behaviour, government bodies should also impose regulations on ease of leaving contracts and transparency of firms pricing strategies. Without this combination, consumers will remain in a one-sided loyal relationship, trapped into by exploitative tactics of firms.