Court rules Teletext Holidays violated consumer law over refunds
The High Court ruled that Teletext Holidays violated consumer law by continuously delaying customer refunds for cancelled holidays during the pandemic.
It broke rules under the Package Travel and Linked Travel Arrangements Regulations, which required refunds to be processed in 14 days for package holidays.
The Competition and Markets Authority (CMA) filed legal action against parent Truly Holdings.
Which? says the case highlights why stronger consumer protection is needed.
Rory Boland, Editor of Which? Travel, said:“Teletext Holidays attempted to shirk its legal responsibilities to refund customers, leaving its exasperated customers out of pocket for years.”
“Holidaymakers have been badly let down, but this important court ruling means they should finally be able to claim the money back they are owed.”
“Teletext is not the only holiday company to break the law over refunds. The Government must ensure there are better protections for holidaymakers’ money by giving regulators stronger powers to take action against companies that break consumer law
This should include the ability to impose fines, Which? said.
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William BurtonMar 01, 2022 10:50 AM
That being said, the EU are consulting about changes to the Package Travel Regulations because they accept that they aren't designed to cope with circumstances like a pandemic, where a travel supplier is expected to reimburse all of it booked clients under PTR, whilst simultaneously being denied access to any income by order of the state. In these circumstances it should be the state's responsibility to step in since whatever the good intentions, it has chosen to intervene to create these circumstances, and no commercial company can realistically afford to hold sufficient reserves in normal times to refund all its working capital and also pay a fair chunk of its overheads for 2 years with no access to revenue.
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