CMA to probe Covid-19 cancellation policies as complaints soar

The UK’s competition watchdog has launched an investigation into cancellation policies after a rash of complaints during the coronavirus outbreak.

The Competition and Markets Authority said it had seen an increasing number of reports relating to cancellations and refunds, with four out of five complaints to its dedicated Covid-19 Taskforce on the subject.

Three sectors were flagged up as being of “particular concern”: weddings and private events, holiday accommodation; and nurseries and childcare provision. Complaints include being pressured to accept vouchers for cancelled holiday accommodation which can only be used during more expensive periods.

The CMA said it would address these areas “as a priority” before moving onto examine other sectors.

Andrea Coscelli, chief executive, said: “Alongside price-gouging reports, we’re now seeing cancellation issues in their thousands.

“The current situation is throwing up challenges for everyone, including businesses, but that does not mean 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.”

The CMA said it expected a full refund to be issued if a contract has been cancelled without the promised goods or services being provided, or if no service was provided by a business, “for example due to the restrictions that apply during the current lockdown”.

It also warned that companies should not seek to profit by “double recovering” money from both customers and the government.