UK’s CMA Launches Court Action To Force Travel Refunds

The Competition and Markets Authority (CMA) launched on Monday, October 18, court action against Teletext Holidays over inadequate progress on refunds to package holiday customers, reported The Financial Times.

On Monday, the CMA announced that it had started proceedings to obtain a court order that would compel Truly Holdings, Teletext Holidays’ parent company, to repay customers still waiting for their money back. 

The case is its first probe into COVID-19 refunds to reach the courts and comes after the CMA abandoned an investigation into pandemic-linked refunds at airlines Ryanair and British Airways in October. “Companies must abide by consumer protection law and treat their customers fairly,” said Andrea Coscelli, CMA chief executive. He continued “After engaging with Teletext Holidays extensively, we are now requesting a court order to make sure that the company immediately pays back the money it still owes to customers and refunds people within 14 days, going forward.”

As the CMA considers that Truly Holdings is in breach of the law and that harm to consumers is ongoing, it is seeking that the claim be expedited, so that the case can be heard more quickly. However, it is for the court to determine a date for the hearing.

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