The Competitions and Markets Authority (CMA) has launched a crackdown on branding tactics in the infant formula market, with new “comprehensive” proposed regulations around pricing the products.

The four areas of recommendations the CMA has called for include the standardisation of packaging in hospitals, and providing clear information to parents in healthcare and retail settings on the nutritional sufficiency of all infant formula.

The regulatory body also suggested changes to make it easier for consumers to compare prices of different brands, extending the ban on advertising to include follow-on formula and allowing parents to use vouchers and loyalty points to buy infant formula.

The new proposals were prompted by the regulatory body launching a study into the infant formula market last year. It found that parents could be saving an average of £300 a year by switching to a lower-priced brand.

However, the CMA identified a combination of factors that was preventing this, with issues including the design and operation of current regulations. It also noted responses of consumers to advertising which emphasises branding, despite “all infant formula meeting babies’ full nutritional needs”.

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Speaking about its new proposals, CMA chief executive Sarah Cardell said parents are victim to “incomplete information” and “pick a brand at a vulnerable moment…. often believing that higher prices must mean better quality”, despite NHS advice stating otherwise.

Cardell added: “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.”

Government public health minister Ashley Dalton welcomed the reported and added that the government would “carefully consider these recommendations and respond fully in due course.”