CMA to investigate unfair coronavirus (COVID-19) related cancellations

CMA to investigate unfair coronavirus (COVID-19) related cancellations

The Competition and Markets Authority (CMA) has launched a programme to investigate reports of businesses failing to respect cancellation rights during the coronavirus (COVID-19) pandemic. 80% of complaints received by the CMA’s Covid-19 Taskforce refer to complaints in relation to cancellations and refunds. For most consumer contracts, the CMA would expect a full refund to be issued where a business has cancelled a contract without providing any of the promised goods or services.

The CMA has identified 3 sectors of particular concern:

• weddings and private events

• holiday accommodation

• nurseries and childcare providers

If companies are failing to comply with the relevant provisions in the Consumer Rights Act 2015 and the Consumer Protection from Unfair Trading Regulations 2008, SI 2008/1277, the CMA will take appropriate enforcement action and reminds the public that individuals can also take their own legal action against unfair terms.

The CMA has also issued a statement on its views on consumer protection law in relation to cancellations and refunds during the pandemic.

Read more about the CMA’s Covid-19 Taskforce here.

Source: CMA to investigate concerns about cancellation policies

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