CMA Cracks Down on Dodgy Cancelation Practices During Covid-19
The Competition and Markets Authority (CMA) has launched a major probe into businesses ignoring consumer cancellation rights amid the Covid-19 chaos.
Skyrocketing Complaints Over Cancellations and Refunds
Through its Covid-19 Taskforce, the CMA is watching the market closely and has noticed a surge in complaints — with 80% now about cancelations and refunds.
- Many firms refuse refunds outright.
- Others are strong-arming customers into accepting costly vouchers for holidays only valid at peak times.
Three Sectors Under the Microscope
The CMA has identified three trouble spots to tackle first:
- Weddings and private events
- Holiday accommodation
- Nurseries and childcare providers
This is just the beginning. The watchdog will expand its investigation to other sectors based on ongoing complaints.
Consumer Rights Are Not Optional
The CMA recognises the unprecedented stress on businesses but warns consumer rights mustn’t get trampled.
Andrea Coscelli, CEO 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.”
“We’re focusing on weddings, holiday accommodation and childcare as red-flag areas. The current situation is challenging for everyone, but consumer rights can’t fall by the wayside. If we find businesses breaking the law, we will get tough — launching enforcement cases and taking court action where needed.”
If firms fail to comply, the CMA will act swiftly, including court cases. Consumers can also seek legal action over unfair terms themselves.
When Should You Get a Refund?
The CMA expects businesses to hand over full refunds if:
- The business cancels your contract and no service or goods are provided.
- The service can’t be delivered due to Covid-19 restrictions or lockdown rules.
- You cancel or can’t receive the service because of official restrictions.
The watchdog also warns companies not to ‘double dip’ by getting money both from the government and customers.
Speak Up and Report Dodgy Deals
If you’ve been hit by unfair cancellation policies, report it to the CMA via their online form. While the CMA can’t respond to every complaint, your info helps shape their crackdown.
