COVID-19: Latest CMA update on its work
The CMA has published the latest update on its work to monitor and respond to competition and consumer problems arising from the pandemic.
The biggest problem being reported to the Competition and Markets Authority (CMA) continues to be businesses behaving unfairly in relation to coronavirus (COVID-19) cancellations and refunds.
Since 10 March 2020, it has been contacted more than 148,000 times about coronavirus-related issues, including cancellations and refunds, and price increases. The volume of complaints about price increases declined from early April 2020 and remains at a low level. Complaints about cancellations and refunds have also fallen, though not to such a great extent.
The CMA has taken decisive action in relation to cancellations and refunds in a number of sectors throughout the pandemic, including package holidays and holiday lets. It has secured commitments from various businesses to refund customers, and issued statements to businesses and the public on how the CMA considers consumer law to apply for weddings and childcare.
The CMA’s action has led to:
- package holiday providers Lastminute.com, Virgin Holidays, TUI UK and LoveHolidays refunding or committing to refund customers more than £200m.
- 2 major holiday lets companies – Vacation Rentals and Sykes Cottages – offering eligible customers £45m in refunds. This followed complaints from customers that they were not getting their money back, despite being unable to use their holiday accommodation due to lockdown restrictions.
- Bijou Weddings Group providing fairer refunds to couples, and firms being warned over concerns that couples were not receiving the refunds they were entitled to.
It has also launched an investigation in the airlines sector to find out whether airlines have breached consumers’ legal rights by failing to offer cash refunds for flights they could not lawfully take. The CMA is working closely with the Civil Aviation Authority on this.
Andrea Coscelli, CMA Chief Executive, said:
The last year has been tough for everyone – including businesses – but that doesn’t mean that consumers, who are also struggling, should be the ones left out of pocket for holidays or other bookings that have been cancelled as a result of the pandemic.
That’s why the CMA has stepped in, making sure people get hundreds of millions in refunds. Our commitment to consumers is ongoing – we will, as appropriate, continue to take action against businesses that are unlawfully refusing refunds.
Read more in the full update.
For more information on the CMA’s work on the coronavirus, visit the CMA coronavirus (COVID-19) response page.
## Notes to Editors
- The CMA is not able to take action or open a case on behalf of an individual customer or business (for example; to pursue compensation, refunds, or to intervene or adjudicate in disputes). However, should members of the public want to know more about the CMA’s coronavirus work, in general, they can view our statement on coronavirus (COVID-19) consumer contracts, cancellation and refunds or contact General Enquiries at: general.enquiries@cma.gov.uk