CMA launches court action against Teletext Holidays

27th October 2021 by admin

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The CMA has launched court action against Teletext Holidays over inadequate progress on refunds to package holiday customers.

On 26 May 2021, the Competition and Markets Authority (CMA) announced that Truly Holdings Ltd, the company that operates Teletext Holidays, and its sister company, the travel operator Alpharooms.com, had signed undertakings committing to refund package holiday customers for holidays cancelled during the pandemic.

After reviewing Truly Holdings’s final report on progress with repayments, the CMA wrote to Truly Holdings on 16 September stating it would take the company to court unless it took urgent action to improve how it handles refunds to package holiday customers.

The CMA does not consider that Truly Holdings has done enough to provide refunds to package holiday customers with outstanding claims, including recent cancellations, or to make sure that it pays all future refunds that are due within the 14 days required by law.

The CMA has therefore filed proceedings requesting a court order that outstanding refunds be immediately repaid and that, going forward, customers who are entitled to a refund are repaid within 14 days. The CMA will also be asking the court to order that Truly Holdings puts in place appropriate processes to ensure it complies with the law in the future.

As the CMA considers that Truly Holdings is in breach of the law and that harm to consumers is ongoing, it is seeking that the claim be expedited, so that the case can be heard more quickly.

As a result of the CMA’s action to date, Truly Holdings has so far paid over £7 million owed to package holiday customers.

[Source: CMA, 18 October 2021)

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