Lastminute.com risks being taken to court unless it pays more than £1m of refunds still outstanding to people who booked holidays with the online travel agent last year.
The Competition and Markets Authority found that Lastminute.com had missed a repayment deadline at the end of January, after promising to pay out more £7m to over 9,000 customers in December last year because of holidays cancelled due to the Covid-19 pandemic.
People were due to receive their refunds by January 31, but the CMA discovered that Lastminute.com still owes more than £1m to 2,600 customers.
The CMA has given the company seven days to pay people back, otherwise the OTA will face court action.
“It is wholly unacceptable that thousands of Lastminute.com customers are still waiting for full refunds for package holidays despite the commitments the company signed with us,” said CMA chief executive Andrea Coscelli.
“We take breaches of commitments extremely seriously. If Lastminute.com does not comply with the law and pay people their outstanding refunds quickly, we will take the company to court.”
Last week, Lastmjnute.com said the refund process had been “very complex and difficult”.
The BBC reported that the travel agent also told some of those package holiday customers to go directly to their airline to get the cost of their flight back, which the regulator said it was not supposed to do.