Cancellations and refunds under scrutiny from consumer watchdog

The Competition and Markets Authority (CMA) is investigating reports of businesses failing to respect cancellation rights during the Coronavirus crisis. 4 out of 5 complaints being received by its COVID-19 Taskforce relate to cancellations and refunds. The sectors giving most cause for concern are private event bookings, holiday accommodation and childcare providers, and the CMA will be tackling these first. But it will then move on to examine other sectors, based on information received, and consumers are being encouraged to report unfair practices.

The CMA is also advising that businesses should not be profiting by ‘double recovering’ their money from the Government and from customers.

Andrea Coscelli, CEO of the CMA, said: "The current situation is throwing up challenges for everyone, including businesses, but that does not mean that consumers should be deprived of their rights at this difficult time. If we find evidence that businesses are failing to comply with consumer protection law then we will take tough enforcement action to protect those rights."