The Competition and Markets Authority (CMA) provided guidance to businesses on 30 April 2020 on how they should act during the Covid-19 pandemic to ensure compliance with consumer legislation. Included in this was guidance on refund, complaints and cancellations.
Their report showed that 4 out of 5 complaints since the outbreak began in March related to cancellations and refunds.
CMA guidance on refunds stated that a business should issue full refunds where due to lockdown restrictions
➢ it has cancelled the contract without providing the goods/services
➢ no service has been provided by the business or
➢ the consumer cancels or is prevented from receiving the service
Refunds should not be subject to administration fees and should be made within a reasonable time. Businesses can require a small contribution towards costs until the service is resumed provided the contribution is clearly outlined in any contract for the goods/services.
The guidance mentions that as an alternative to refunds consumers can be offered credit vouchers or a re-scheduling of services as long as the business does not mislead/pressure the consumer into acceptance.
In light of the above and the continuing issues with Covid it is probably a good time to review your complaint, return and cancellation procedures/policies.
Motor Industry Legal Services
Motor Industry Legal Services (MILS Legal Ltd) provides fully comprehensive legal advice and representation to UK motor retailers for one annual fee. It is the only law firm in the UK which specialises in motor law and motor trade law. MILS currently advises over 1,000 individual businesses within the sector as well as the Retail Motor Industry Federation (RMI) and its members.
