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Package holiday businesses to comply

The Competition and Markets Authority (CMA) is investigating suspected holiday package businesses for suspected breaches of consumers protection law. The CMA expects Package holiday businesses to comply with the package Travel and Linked Travel Arrangements Regulations 2018 and Unfair Trading Regulations 2008.

The Package Travel and Linked Travel Arrangements Regulations 2018

Under this law, consumers are entitled to a full refund within 14 days of cancellation of their holiday packages due to COVID-19 outbreak.

The Unfair Trading Regulations 2008

Holiday package businesses shall comply with the Unfair Trading Regulations 2008. By being honest to consumers about their statutory rights. Giving inadequate or misleading information to Consumers about their statutory rights may potentially breach of this regulation.

The Competition and Markets Authority has issued an open letter to package holiday businesses today (10 July 2020) asking businesses in this sector to comply and be fair to their customers/consumers.

Open letter to holiday package businesses

In the open letter, the CMA outlines what are unfair conducts to the consumers by package holiday businesses.

1. Consumers not being offered and/or provided full cash refunds in accordance with their statutory rights. This includes consumers not receiving refunds without undue delay and in any event not later than 14 days after the package travel contract has been terminated. It also includes consumers only being offered a voucher or the right to rebook a holiday instead of a refund.

2. Consumers losing their deposits and/or being charged cancellation fees when exercising their statutory right to terminate a package holiday contract and when they are entitled to a full refund.

3. Consumers not being provided with clear information and/or being otherwise misled about their statutory rights.

4. Consumers facing significant barriers when trying to exercise their statutory rights. For example, consumers being asked to request a refund on their terminated package booking by telephone, but being unable to readily contact businesses in this way.

5. Consumers being unable to contact businesses effectively to discuss other concerns, such as wanting to pay their balance in order not to forfeit their deposit as a result of late payment.

letter by: Cecilia Parker Aranha, the Director, Consumer Group

You can read the full open letter here.

The CMA is investigating holiday package businesses with suspected breaches of consumer protection law. You can read about the CMA’s investigation work here which is published today, 10 July 2020.

Companies House filings during COVID-19 pandemic

Companies House also gear up to support UK businesses during COVID-19 pandemic. They automatically extending companies’ filings deadlines. This will help your company to avoid a late filing penalty if you are unable to deliver your company accounts on time during this pandemic. You do not need to do anything. Go to Companies House website to check your new filing deadline.

On the same note, your confirmation statement filing deadline will also be extended. You would have 6 weeks to file your confirmation statement. Similarly, for the events driven filings, you will have 42 days (6 weeks) to notify Companies House instead of the usual 14 days filing deadline.

In addition, Companies House also created an interim paperless filing service to accept documents which would normally require a live signature.

You are also encouraged to submit your documents online to Companies House during this COVID-19 outbreak. You can file the following documents to Companies House digitally.

To file online, you would require your company’s authentication code. The authentication code is the electronic equivalent of your company’s director(s) signatures. Keep safe your authentication code.

If you require help with your company’s filings, contact Our accountants. They will be more than happy to assist you.

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