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Refunds and cancellations during lockdown

On 28 August 2020, the Competition and Markets Authority (CMA) gave its views on the law regarding cancellations and refunds during the coronavirus pandemic.

The general view is that a consumer who has paid for goods or services that cannot be provided because of the pandemic is entitled to a full refund.

If a contract is partially affected by lockdown laws, a consumer may be entitled to a refund or price reduction. Many types of consumer contract, such as foreign holidays, have specific provisions. Where the Foreign Office advises against travel to a particular country, generally a full refund should be provided. If the government simply offers guidance, that will usually not justify an automatic refund. The CMA has written to some package holiday companies to remind them of their legal duties. [20.08/2]