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CMA investigates Teletext
The Competition and Markets Authority has launched an investigation into Teletext after receiving hundreds of complaints about missing refunds for holidays cancelled due to Covid.
It says it is looking into claims that Teletext promised to refund clients but later pushed back the refund date.
The CMA plans to engage with Teletext to gather further evidence to establish whether the online travel agent has broken consumer protection law.
If it finds a breach, it says it could either secure commitments from Teletext to address the issue, or it could take legal action.
However, the CMA said its probe was at an early stage and it shouldn’t be assumed that Teletext has broken the law.
The CMA has already secured commitment from other travel companies to speed up their refunds process. These include TUI, Virgin, lastminute and loveholidays.
It is also investigating whether airlines have breached consumers’ legal rights by refusing to offer cash refunds for flights they could not lawfully take due to the pandemic.
CEO of the CMA, Andrea Coscelli, said that while the pandemic is ‘presenting challenges for travel businesses’, it is important consumers are properly protected and firms comply with the law.
Rory Boland, Editor of Which? Travel, welcomed the CMA investigation. He added: "Customers have been understanding of the difficult circumstances travel companies faced in the past year, but it’s clear now that some operators feel empowered to act with impunity.
"The regulator should establish the scale of the problem and, if necessary, quickly take appropriate action against the company to send a clear message that it will not stand for this kind of behaviour."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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