Wedding, holiday and nursery firms to be investigated over failing to issue refunds amid lockdown
1 May 2020, 13:57
The CMA is looking into firms that are failing to refund customers amid the coronavirus pandemic.
Since lockdown was announced on March 23, The Competition and Markets Authority (CMA) has seen a rise in complaints against companies failing to give refunds.
They have revealed that four out of five complaints they have received on their COVID-19 Taskforce have been regarding cancellations and refunds.
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The three main areas which are causing issues for the UK are weddings and private events, holiday accommodation, nurseries and childcare providers.
The CMA are now investigating these firms not issuing refunds, starting with the three main areas affecting the public.
Andrea Coscelli, the chief executive of the CMA, said: “Our Covid-19 taskforce is shining a light on some of the big issues facing consumers in wake of this pandemic.
"Alongside price-gouging reports, we’re now seeing cancellation issues in their thousands. So far, the CMA has identified weddings, holiday accommodation and childcare as particular areas of concern.
“The current situation is throwing up challenges for everyone, including businesses, but that does not mean that consumer rights can fall by the wayside.
"If we find evidence that businesses are failing to comply with consumer protection law then we will get tough – that means launching enforcement cases and moving to court action where there is a strong reason to do so.”
