The Competition and Markets Authority (CMA) has launched an investigation into Teletext Holidays after receiving hundreds of complaints that people were not getting refunds for package holidays cancelled due to the coronavirus pandemic.
In some instances, Teletext customers reported that they were promised refunds by a certain date, only to have it pushed back.
The CMA has said it will now engage with Teletext to gather further evidence on whether the company has broken consumer protection law.
Andrea Coscelli, CEO of the CMA, said: “We understand that the pandemic is presenting challenges for travel businesses, but it is important that the interests of consumers are properly protected and that businesses comply with the law.”
He added: “We’ll be engaging with Teletext to establish whether the law has been broken and will take further action if necessary.”
The announcement follows significant action by the CMA in relation to holiday cancellations since coronavirus restrictions were first implemented in March last year.
The consumer watchdog has written to over 100 package holiday firms to remind them of their obligations to comply with consumer protection law.
The CMA has already secured refund commitments from a number of holiday firms, including:
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Love Holidays
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Lastminute.com
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Virgin Holidays
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TUI UK
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Sykes Cottages
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Vacation Rentals
The watchdog is also investigating whether airlines have breached consumers’ legal rights by failing to offer cash refunds for flights they could not lawfully take due to the pandemic.
You can find out more information and follow updates on the CMA website here.
