BUSINESS NEWS


Travlaw’s Stephen Mason: ‘The CMA hit the travel industry hard but not the suppliers who created the problem’


Mason questions merit of new powers for CMA


Lawyer slams authority for ‘questionable judgment’ on refunds. Ian Taylor reports


A leading industry lawyer has accused the Competition and Markets Authority of “questionable judgment” in pursuing travel companies over refund payments during the pandemic. Stephen Mason, senior counsel


at Travlaw, hit out at the CMA and questioned the “sweeping powers” to impose large fines without going to court it will gain under government plans unveiled last month. These will enable the CMA to “decide for itself” when consumer law has been breached and fine companies “up to


48 19 MAY 2022


10% of global annual turnover”. At present, the CMA can’t impose fines for breaking consumer law, including the Package Travel Regulations (PTRs), without going to court. Addressing an Abta Travel Law


Seminar in London, Mason asked: “Am I the only person worried that a body which has shown such questionable judgment is being given sweeping new powers?” He said: “The CMA hit the travel


industry hard but not the suppliers who created the problem. A cynic might say it obtained undertakings


from companies that were always going to pay, obtained a court order against a company which had already gone bust [and] forced companies to use valuable resources needed for refunds.” It also failed to clarify the law on refunds, he said. The CMA obtained undertakings


from Tui, Virgin Holidays, Loveholidays, lastminute.com and Truly Travel, and prosecuted Truly after the company ceased


Continued on page 46 travelweekly.co.uk


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