Through its Covid-19 Taskforce, which monitors market developments and identifies the big problems facing consumers, the Competition and Markets Authority (CMA) has seen increasing numbers of complaints in relation to cancellations and refunds.

These now account for 4 out of 5 complaints being received into the Taskforce and so far include concerns about businesses refusing refunds or firms pressuring people to accept vouchers for holiday accommodation, which can only be used during a more expensive period.

Based on the complaints received, the CMA has identified 3 sectors of particular concern:

• weddings and private events
• holiday accommodation
• nurseries and childcare providers

It will tackle these areas as a priority and then move on to examine other sectors, based on the information received by the taskforce.

The CMA acknowledges that most businesses are acting reasonably in what are unprecedented circumstances, and the current crisis is placing everyone under pressure, but consumer rights cannot be ignored.

If it finds evidence that companies are failing to comply with the law, the CMA will take appropriate enforcement action, including moving quickly to court if a firm does not address its concerns. Individuals can also take their own legal action against unfair terms should they choose to.

As well as examining specific sectors, the CMA is issuing a statement on its views on consumer protection law in relation to cancellations and refunds during the current crisis.

For most consumer contracts, the CMA would expect a full refund to be issued where:

• a business has cancelled a contract without providing any of the promised goods or services

• no service is provided by a business, for example because this is prevented by the restrictions that apply during the current lockdown

• a consumer cancels or is prevented from receiving the service, for example due to the restrictions that apply during the current lockdown

It also advises that businesses should not be profiting by ‘double recovering’ their money from the Government and customers.

Andrea Coscelli, CEO of the CMA, said:

Our Covid-19 taskforce is shining a light on some of the big issues facing consumers in wake of this pandemic. Alongside price-gouging reports, we’re now seeing cancellation issues in their thousands. So far, the CMA has identified weddings, holiday accommodation and childcare as particular areas of concern.

The current situation is throwing up challenges for everyone, including businesses, but that does not mean that consumer rights can fall by the wayside. If we find evidence that businesses are failing to comply with consumer protection law then we will get tough – that means launching enforcement cases and moving to court action where there is a strong reason to do so.

If people have been affected by unfair cancellation terms in wake of Covid-19, they can report them to the CMA using the online form.

Whilst the CMA is not able to respond directly to every complaint it receives, the information provided will help the CMA to decide which issues to address as part of this rolling programme of work.

Notes to Editor

1. The Covid-19 Taskforce was launched on 20 March to scrutinise market developments, identify harmful sales and pricing practices as they emerge and take enforcement action if there is evidence firms may have breached competition or consumer protection law.
2. Protecting consumers during the coronavirus (COVID-19) pandemic: update on the work of the CMA’s Taskforce.
3. The key pieces of consumer protection legislation relevant to the CMA’s investigation are the Consumer Rights Act 2015 (CRA) and the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). The CRA prohibits the use of unfair terms in contracts between businesses and consumers. The CPRs prohibit unfair commercial practices by businesses towards consumers.
4. For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk.

Thank you very much, Mr President. Thank you, also, Mark, for your briefing today.

Mr President, the United Kingdom remains deeply concerned about the potentially catastrophic impact of COVID-19 in Syria. We’ve heard today there are 43 confirmed cases and likely already many more – unknown because of the lack of testing capacity. The 6.2 million internally displaced Syrians face a particularly severe risk. Almost 940,000 of those are living in appalling conditions in the northwest.

The United Kingdom is committed to playing its part to tackle the spread and impact of coronavirus in Syria and other vulnerable countries across the globe. So far we have pledged over $900 million to the international response to help end the pandemic. $350 million of this funding is helping to reduce mass infections in vulnerable countries. Our money would install new hand washing stations, isolation and treatment centres in refugee camps and increase access to clean water for those living in areas of armed conflict. As the third largest bilateral humanitarian donor to the Syrian response, with over $4 billion spent since the conflict began, we are urgently working to ensure our significant humanitarian programme across Syria, including, of course, in those areas under regime control, can most effectively address the direct and indirect consequences of the pandemic. And we welcome the recent increase in cross-border aid into northwest Syria and the maintenance of the ceasefire agreed between Russia and Turkey on the 5th of March. This is helping humanitarian agencies to meet huge needs in Idlib and to focus on the threat of COVID-19. The evidence is clear that the UN cross-border mandate must continue past July.

Colleagues, coronavirus knows no borders. It knows no front lines. It is a threat to all in Syria and beyond. Preventing it is a matter of humanity, not of politics. We must ensure that no part of Syria is neglected in the effort to prevent and prepare for the potential spread of the virus.

And that’s why we’re so concerned about the northeast of Syria. Both OCHA and the World Health Organisation have highlighted a dangerous void. The World Health Organisation has confirmed the first death from COVID-19 in that area. And we know from what we’ve learned everywhere else in the world that community transmission is surely ongoing. Yet there are apparently only 35 ICU beds in the whole of the region.

As OCHA told us in this Council on the 24th of April, humanitarian assistance delivered by land or air has only reached 31% of the health facilities previously supplied cross-border via Yaroubiya. That means 69% of health facilities are not receiving the supplies that they need. Moreover, the urgency to address the pandemic is not reflected in the pace of approvals for cross-line assistance. As noted in the SG’s report, the authorities in Damascus continue to take three to four months to respond to medical delivery requests to the northeast.

Colleagues, with a need so pressing, we must work together. We must put aside previous political differences. We must enable the United Nations to use all modalities for the specific purpose of preventing a health disaster for as long as coronavirus poses such a threat.

The United Kingdom is proud to stand with many others around this Council table as part of a decisive and coordinated action to tackle the spread and impact of coronavirus in vulnerable countries across the globe. We must work together to do the same for Syria. We must give the United Nations and its humanitarian partners the best chance of being able to respond to the outbreak in all areas via all necessary modalities. Tackling this global pandemic invokes our common humanity. We should all think carefully about the actions and decisions that we can take.

Thank you, Mr President.

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