Britain’s competition watchdog is reportedly set to investigate consumer complaints across three sectors following “thousands of cancellation issues”.
The Competition and Markets Authority (CMA) confirmed it it has received ‘thousands’ of complaints in relation to cancellations and refunds and had briefed its Covid-19 Taskforce to look into “increasing numbers of complaints in relation to cancellations and refunds”.
According to the CMA, these complaints now constitute 80% of grievances received by the taskforce, and include businesses refusing refunds and firms “pressurising” people to accept vouchers.
In a statement, the authority said: “The CMA acknowledges most businesses are acting reasonably in what are unprecedented circumstances, and the current crisis is placing everyone under pressure, but consumer rights cannot be ignored.”
The CMA has warned that where companies are failing to comply with the law, it will take “appropriate enforcement action”.
CMA Chief Executive Andrea Coscelli 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. So far, the CMA has identified weddings, holiday accommodation and childcare as particular areas of concern.
“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.”
Matt Buffey, CAA head of consumer protection, said: “We welcome the investigation from the Competition and Markets Authority (CMA) into cancellation rights and refunds and the statement on its view of how consumer protection law applies.
“We will continue to work alongside the CMA on this issue as it progresses. We expect airlines to provide refunds for cancelled flights as soon as practically possible.”
