The U.K.’s Competition Markets Authority has launched an investigation on whether some airlines have breached consumers’ legal rights by failing to offer cash refunds for flights they could not lawfully take.
In a statement released on Wednesday (December 16), the CMA said it is looking into some airlines’ refusal to provide holiday cash refunds especially during the height of the lockdowns and travel restrictions that happened during the COVID-19 pandemic.
The CMA investigation will consider situations where airlines continued to operate flights despite people being unable to lawfully to travel for non-essential purposes in the UK or abroad, for example during the second lockdown in England in November.
The consumer protection body will be writing to airlines requesting information to understand more about their approach to refunds for consumers prevented from flying due to the lockdown.
The Competition and Markets Authority have not disclosed which airlines they are currently investigating or communicating with during the initial stages of the probe but has assured that they will name airlines refusing to give out holiday cash refunds should they launch enforcement action against them.
According to the CMA, they are aware that, in some cases where flights were not cancelled, customers were not offered refunds even though they could not lawfully travel. Instead, many were offered the option to rebook or to receive a voucher.
The CMA stressed that it recognises that the airlines sector, like many others, is under strain due to the pandemic.
However, it is concerned that certain airlines may have breached consumers’ legal rights by failing to offer cash refunds, leaving people unfairly out of pocket, and has therefore opened an investigation to examine the matter further.
“We will be carefully analysing all the evidence to see whether any airlines breached consumers’ legal rights by refusing people cash refunds for flights they could not lawfully take,” CMA chief executive Andrea Coscelli said.
“We recognise the continued pressure that businesses are currently facing, but they have a responsibility to treat consumers fairly and abide by their legal obligations,” Coscelli added.
The CMA is working closely with the UK Civil Aviation Authority (CAA) as the investigation progresses.
While the CAA leads on consumer protection in the airline sector, the CMA has undertaken extensive action in connection with cancellations and refunds during the pandemic and is well placed to support the aviation authority on these issues. Both bodies share the same enforcement powers to tackle breaches of consumer protection law.
Following a careful analysis of this evidence, the CMA then will decide whether to launch enforcement action against individual airlines.
However, the government body cannot levy administrative fines as an enforcer under Part 8 of the Enterprise Act 2002 but it can enforce consumer protection legislation through the courts, and where appropriate, obtain additional measures to improve consumer choice, drive better compliance with the law, or obtain redress for consumers.
Read More Stories: US FAA Clears Boeing’s 737 Max to Fly Again after Fatal Crashes
