The Competition and Markets Authority (CMA) has sent a letter of warning to more than 100 package travel operators urging them to refund customers or face potential legal action.
The CMA has issued the letter as part of its investigation into “suspected breaches of consumer protection law in the package holiday sector”.
The letter from Cecilia Parker Aranha, Director of the CMA’s Consumer Group, says: “The CMA is particularly concerned about the harm which consumers are suffering in the package travel sector.
“Intelligence suggests that businesses may not be providing the refunds required by consumer law when package holiday contracts are terminated as a result of Covid-19.
“The CMA expects that consumers who are entitled to refunds will be paid those refunds, and that businesses will comply with consumer law.”
The CMA has received more than 17,500 complaints from consumers about package travel companies over Covid-19 cancellations since March.
