The Competition and Markets Authority has vowed to get tough with firms failing to give refunds to customers for cancelled events or accommodation because of the COVID-19 pandemic, saying it will move to court action “where there is a strong reason to do so.” The competition watchdog said complaints about cancellations and refunds account for four out of five of those received by its coronavirus taskforce. The CMA warning covers UK holiday accommodation and private events, but not the issue of refunds for cancelled flights, which is regulated by the Civil Aviation Authority – which has also suggested that legal action could be taken.
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The Competition and Markets Authority (CMA) has issued a stern warning to businesses that have failed to provide refunds for cancellations due to COVID-19 disruptions. Since the onset of the pandemic, numerous consumers have faced challenges in reclaiming their money for services and events that were either cancelled or postponed. The CMA, responsible for ensuring that businesses comply with consumer protection laws, has received a surge in complaints about companies stalling on refund payments. This has led to mounting frustration among consumers who are already grappling with the financial impact of the pandemic. The CMA has now made it clear that it will not hesitate to take legal action against companies that continue to disregard their refund obligations.
The CMA’s intervention comes after a thorough investigation into the practices of several businesses, revealing widespread non-compliance with refund policies. The authority emphasised that consumers are legally entitled to refunds for services that were not provided due to COVID-19 restrictions. Andrea Coscelli, the Chief Executive of the CMA, stated, “Businesses must recognise their responsibilities and ensure that customers are not left out of pocket.” The CMA has already taken enforcement action against some companies, resulting in millions of pounds being returned to consumers. However, the authority warns that many businesses are still lagging in their duties. The CMA is urging affected consumers to come forward and report any unfair practices, promising to hold firms accountable and ensure fair treatment during these unprecedented times.
