The Competition and Markets Authority (CMA) is investigating reports of businesses failing to respect cancellation rights during the coronavirus pandemic.
The watchdog has set up a Covid-19 Taskforce to monitor market developments and identify the big problems facing consumers.
The CMA said it has seen increasing numbers of complaints in relation to cancellations and refunds, which now account for four out of five complaints being received, with weddings and private events, holiday accommodation, and nurseries and childcare providers the three main sectors of concern.
Complaints included that nurseries were asking people to pay very high sums in order to keep a place open for their child, people being pressured to accept vouchers for holiday accommodation that can only be used during a more expensive period, and wedding venues refusing to refund any money and telling people to claim on their insurance.
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