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Competition watchdog ‘concerned’ over holiday refunds

The UK Competition and Markets Authority has expressed “particular concerns” about holiday refunds and cancellations.

In an update on protecting consumers during the Covid-19 pandemic the body said four out of five of complaints about unfair practices are about refunds and cancellations.


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As the controversy over refunds continues and the travel sector awaits guidance from the government, the authority said it will set out further steps next week.

A CMA Covid-19 Taskforce has received 21,000 complaints about coronavirus related issues from March 10 to April 19.

The authority is also monitoring the situation based on information received from consumer bodies such as Which? and Citizens Advice, and through enforcement partners such as Trading Standards and sector regulators.

The CMA said: “The restrictions on travel resulting from the coronavirus outbreak have been obliged to cancel holidays, travel and other plans.

“The CMA is particularly concerned about businesses refusing refunds in these circumstances; introducing unnecessary complexity into the process of obtaining refunds; charging high administration or cancellation fees; and pressuring consumers into accepting vouchers instead of cash refunds.

“A growing proportion of complaints to the CMA are about cancellations and refunds, and they currently account for around four in five complaints. Complaints are concentrated among a small number of large businesses.

“The CMA will set out further steps in relation to cancellations and refunds next week.”

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