Probe launched after complaints over coronavirus refunds

Complaints about nurseries, childcare providers, wedding companies and those offering holiday accommodation failing to offer coronavirus refunds are being investigated.
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The Competition and Markets Authority (CMA) said complaints around cancellations and refunds account for four in five of those being received by its Covid-19 taskforce, which monitors market developments and identifies the big problems facing consumers.

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Concerns include businesses refusing refunds or firms pressuring people to accept vouchers for holiday accommodation, which can only be used during a more expensive period.

An investigation has been launched into companies not providing refunds during the coronavirus outbreak (Pic: PA)An investigation has been launched into companies not providing refunds during the coronavirus outbreak (Pic: PA)
An investigation has been launched into companies not providing refunds during the coronavirus outbreak (Pic: PA)

The watchdog said consumer rights cannot be ignored.

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Businesses should also not be profiting by ‘double recovering’ their money from the Government and customers, the CMA added.

If it finds evidence that companies are failing to comply with the law, the CMA will take enforcement action.

Customers can also take their own legal action.

The CMA said it has identified three sectors of particular concern - weddings and private events, holiday accommodation, and nurseries and childcare providers.

It said it will tackle these areas as a priority and then move on to other sectors.

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But it added that most businesses were acting reasonably in unprecedented circumstances, and the crisis is placing everyone under pressure.

Andrea Coscelli, chief executive of the CMA, said: “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.”

Adam French, a consumer rights expert at Which?, said: “We've heard from many distressed people who risk being left out of pocket for significant sums of money as they struggle to get refunds for cancelled weddings, private events or holiday accommodation.

“It's right the CMA investigates sectors that are skirting their legal responsibilities on refunds and cancellations by trying to rely on unfair and unenforceable terms and conditions.

“The regulator must be prepared to step in and take strong action against any businesses found to be breaching consumer law and taking advantage of consumers during these unprecedented times.”

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