The Competition and Markets Authority has vowed to get tough with firms failing to give refunds to customers for cancelled events or accommodation because of the COVID-19 pandemic, saying it will move to court action “where there is a strong reason to do so.” The competition watchdog said complaints about cancellations and refunds account for four out of five of those received by its coronavirus taskforce. The CMA warning covers UK holiday accommodation and private events, but not the issue of refunds for cancelled flights, which is regulated by the Civil Aviation Authority – which has also suggested that legal action could be taken.
CMA threatens legal action on stalled refunds! Let Dnd Law Solicitors Newry guide you through your legal rights and reclaim what’s yours.
The COVID-19 pandemic has disrupted businesses across the globe, resulting in mass cancellations and a significant increase in consumer refund claims. However, as companies face financial pressures, many consumers are finding it challenging to obtain refunds for services and products they couldn’t use. In response, the Competition and Markets Authority (CMA) has taken a strong stance on this issue, threatening legal action against companies that fail to honour consumer refund rights. DND Law, based in Newry, has been closely monitoring these developments, as they could have substantial implications for both consumers and businesses.
The CMA’s action stems from growing complaints from consumers who have been denied refunds for services they could not use due to government restrictions, including holiday packages, event tickets, and gym memberships. Under UK law, if a business cancels a contract without providing the agreed-upon service or goods, the consumer is entitled to a full refund. Despite this clear legal position, many businesses have been slow to process refunds, citing financial hardship or claiming that alternative options such as vouchers are sufficient.
The CMA has issued multiple warnings to businesses, reminding them of their obligations under consumer law. The authority is particularly concerned about businesses that attempt to offer vouchers instead of cash refunds or impose unnecessary delays on payments. With the threat of legal action, the CMA hopes to enforce compliance and safeguard consumer rights. The authority has also called on businesses to treat customers fairly and avoid using COVID-19 as a justification for withholding refunds.
DND Law advises both consumers and businesses in Northern Ireland to be aware of their rights and obligations in these challenging times. For consumers, understanding your right to a refund can help you seek redress if a service or product cannot be provided as agreed. For businesses, compliance with consumer protection laws is essential to avoid costly legal action and maintain a positive reputation.
As legal specialists, DND Law is here to help clients navigate the complexities of consumer law during this unprecedented time. Whether you’re facing issues with refunds or seeking advice on handling refund claims as a business, our team in Newry is ready to provide the support you need.
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