31 Jul 2021 Covid-19 Travel Tests Investigation
A Fideres investigation, featured in The Guardian, finds that two thirds of the cheapest Covid-19 PCR travel tests listed on the government website are unavailable or inaccessible. Of the top 50 cheapest companies, 66% of providers offering on-site or click and collect test packages had no availability during the summer holiday period, with customers paying orders of magnitude more for home-delivery tests.
Fideres also found that the travel test providers at the top of the government’s list had the biggest gap between advertised and actual prices. Of the top 50 providers, the average price disparity was £60, with some providers charging as much as 7x more for home delivery tests.
These ‘rock bottom’ prices are often below cost, as top labs charge providers at least £38 per test. Paul Vella, Economic Consultant at Fideres, said “This is only sustainable if providers restrict supply to the below-cost service, using it to steer customers into buying their more expensive tests.”
Vella went on to say: “The government is reporting prices that are a small fraction of what most consumers pay, without actually checking if these low prices are available … Not only does this mislead consumers, it can actually steer them into using more expensive providers.” To address this, the Government should only list prices that are “truly available to a meaningful number of consumers.”
The Advertising Standards Agency is now investigating, after receiving complaints from consumers about “inconsistent pricing”.
Paul joined Fideres in 2019 after completing a BSc. in Economic History at the London School of Economics and Political Science. His dissertation explored the impact of immigration on US wage growth during the Age of Mass Migration (1860-1920). At LSE, Paul was also a Trustee of the Student Union and President of the Music Society, having previously performed with two national choirs in the US. At Fideres, Paul’s work primarily focuses on cases of financial antitrust, financial benchmark manipulation, and financial market manipulation litigation, particularly regarding Foreign Exchange and Bond Market manipulation.