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Teletext holiday 20184/5/2023 The Package Travel and Linked Travel Arrangements Regulations 2018 came into force on and apply to travel arrangements booked on or after 1 July 2018. The judge considered the relevant principles from the caselaw and decided that this would be an appropriate case in which to exercise that discretion, if the facts of the declaration sought were proven. ![]() The CMA accepted that an enforcement order would subvert the pari passu distribution of assets under insolvency rules but maintained its claim for a declaration that the tour operators had been in breach of the Package Travel Regulations (which was in any case a necessary precursor to the enforcement orders sought).Ī claimant does not have a legal entitlement to declaratory relief as of right, though under section 19 of the Senior Courts Act 1981 the court has a general discretion to grant it. In December 2021, all three defendants were placed into voluntary liquidation and accordingly argued that the CMA’s proceedings “no longer served any purpose”. In response to the CMA investigation, in May 2021, the defendants provided undertakings to “use all reasonable endeavours to pay outstanding refunds to passengers” but the CMA became concerned that the undertakings were not being complied with fully and enforcement proceedings were commenced in October 2021. The CMA received numerous complaints from customers of the defendants who had not received refunds for package holidays cancelled due to COVID-19. The CMA’s power to bring this claim derives from section 2 of the Enterprise Act 2002, which makes it the general enforcer of consumer protection legislation and responsible for bringing enforcement proceedings to prevent infringements and protect consumers. The Competition and Markets Authority (‘CMA’) All three defendants are now in liquidation. ![]() Truly Holdings Ltd (D1) was the parent company of both Truly Travel Ltd (D2) and Alpha Holidays Ltd (D3) which traded as Teletext and Alpharooms respectively. The claim was decided on the papers by Jonathan Richards, sitting as a Deputy High Court Judge of the Business and Property Courts (Chancery Division). ![]() This blog post is by Peter Hale, a pupil at 12 King’s Bench Walk. Unusually, this claim was for declaratory relief which was granted without a trial. The judgment, in a claim brought by the Competition and Markets Authority against two tour operators, will also be of collateral interest to travel practitioners. The court has ordered that the CMA’s claim for a declaration shall be listed for a hearing on the first open date after January 11, 2022.This week, defunct tour operators Teletext Holidays and were declared to have breached the Package Travel and Linked Travel Arrangements Regulations 2018 for their delay in providing refunds for holidays cancelled by COVID-19. “A declaration from the Court may also make it easier for people to obtain refunds in future if their package holiday is cancelled by other providers due to the Covid-19 pandemic and will emphasise to businesses in the sector the importance of complying with their refund obligations.” “The CMA considers that it is important to continue with its claim for a declaration in order to provide further certainty to people still waiting for refunds for cancelled package holidays. In a statement, the CMA said: “To enable the liquidation to progress without interference, the CMA has agreed that its court action, should be stayed – temporarily paused – pending the outcome of the liquidation process with the exception of the CMA’s request for a declaration as to whether Teletext Holidays and breached the Package Travel and Linked Travel Arrangements Regulations 2018. ![]() In October, the CMA launched legal action against Teletext Holidays over the company’s failure to pay refunds on cancelled package holidays. The companies entered into voluntary liquidation on December 2, after liquidators were appointed to close down parent firm Truly Travel. The Competition and Markets Authority (CMA) has agreed to temporarily pause its court action against Teletext Holidays and to enable the liquidation of the companies.
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