Coronavirus: ACCC urges companies to give refunds

Event organisers are being told to give refunds for coronavirus cancellations even if they don’t have to by law.

Fans talk to ticket vendors after finding out Australian Grand Prix was cancelled before practice. Picture: Getty Images

The competition regulator has urged companies to provide refunds for events cancelled due to the coronavirus outbreak, even when reimbursements are not mandatory under consumer laws.

The Australian Competition and Consumer Commission has provided consumer advice in relation to cancellations of travel and events, amid an environment of growing government restrictions on public gatherings and social interactions.

Under Australian consumer law, the ACCC expects companies to refund in full if it decides to cancel an event or travel service. However, the watchdog noted potential closures caused by government responses may affect consumer guarantees.

The Australian Consumer Action Law Centre (ACLC) has flagged the COVID-19 outbreak is likely to expose weaknesses within current legal frameworks, which could lead to poor consumer outcomes.

“The crisis is likely to expose some weaknesses … including limitations to consumer rights when events and tickets are cancelled due to government restrictions or events outside of human control,” an ACLC spokeswoman said.

The regulator noted in some of these situations consumers may be entitled to a refund, but that would be dependent on the terms and conditions of the ticket. They may also need to make a claim through an insurance policy.

ACCC chair Rod Sims said his organisation expected businesses to treat consumers fairly and compassionately in this uncertain time.

“We welcome the decisions by many businesses who are already offering refunds to all ticket holders, and expect other event and travel businesses to also offer remedies to all affected consumers when events or travel services are cancelled,” Mr Sims said.

Failure for a business to accept a refund in the event of a cancellation could result in legal ramifications, potentially constituting misleading conduct under consumer law.

ACLC also noted travel ticket cancellations due to the pandemic have already exposed problems within travel insurance sales and coverage.

Consumers who changed their minds about an event or travel when there were no restrictions placed on an activity would still be subject to a company’s cancellation policy and terms and conditions, the ACCC said.

“Consumers in all situations should contact businesses directly to request a refund or other remedy such as a credit note or voucher,” Mr Sims said.

“We also remind consumers that many small and medium businesses are trying to respond to the COVID-19 outbreak as best they can. We urge consumers to exercise patience and treat service staff with courtesy and respect as they fulfil consumer requests for refunds and remedies.”

An ACLC spokeswoman also said consumers who had cancelled event tickets can also rely on the live performance Australia ticketing code of practice.