lastminute.com will face legal action unless it repays over £1mln in refunds after cancelling its package holidays, the Competition and Markets Authority (CMA) said.
In December, the travel operator formally committed to pay out more than £7mln to over 9,000 customers who got their bookings scrapped due to the pandemic.
All those affected were due to get their money back by January 31 at the latest, however, lastminute.com still owes over £1mln to 2,600 customers, the competition watchdog said.
The company has also failed to meet its ongoing commitment to repay all customers entitled to a refund within 14 days of their package holiday being cancelled on or after December 3.
Some customers were told to go directly to their airline to get their flight refunded, which is in breach of lastminute.com’s commitments and against its obligations under the Package Travel Regulations, the CMA noted.
The regulator has informed lastminute.com that it will take court action if it does not repay the outstanding refunds within seven days.
To avoid court action, lastminute.com must also ensure that customers who book their package holidays from now on will receive a full refund within 14 days where they are legally entitled to their money back following the cancellation of their package holiday, it added.