Consumer unrest and uncertainty caused by the coronavirus

Concerns about getting your money back 

Holidays, air travel and events have all been cancelled due to the coronavirus. Companies are often difficult to reach, consumers are left in the dark and may not always know what they are and are not entitled to. Consumers’ greatest concern is getting their money back. 

Why claiming a refund during the corona crisis makes little sense

In case of a cancellation, companies always look at the possibility of rescheduling or moving the holiday, flight or event first. However, due to the measures taken by governments across the world to mitigate the consequences of the coronavirus, this is simply impossible at the moment. If it proves impossible to reschedule or move the flight or event, for example, companies must, in principle, refund their customers. Although consumers are entitled to a refund, claiming one is not always a realistic option during the corona crisis.

Companies such as airlines, travel companies and event organisers generate virtually no income during the corona crisis, whilst still having to pay for their expenses, such as wages. If all consumers now start claiming the refunds they are entitled to at the same time, it is highly likely that companies will run into financial difficulties and may even go bankrupt. When that happens, the chances that consumers will ever get their money back become very slim indeed. 

Vouchers as a sound alternative for refunds during the corona crisis

If claiming a refund makes little sense at the moment, does this mean that consumers have simply lost their money? No! As an alternative to refunds, many companies offer vouchers. These vouchers have the same value as the purchase amount and can be used to book a trip or go to an event after the crisis. This does not mean that consumers lose their right to a refund. Forbearance is no acquittance. Consumers are entitled to what they have paid for, though at a later time. 

“Working together to limit the damage to society”

As things are, Dutch ministries and authorities believe that vouchers are a good solution. We are living in exceptional times, in which we will have to work together to limit the damage to society. The Netherlands Authority for Consumers & Markets (ACM) supports initiatives that safeguard the interests of all stakeholders, such as providing vouchers as an alternative to refunds.  

ACM supervision during the corona crisis

In order to protect the rights of consumers, the Netherlands Authority for Consumers & Markets has published a guideline detailing criteria for vouchers. Vouchers must, for instance, be an equivalent substitute for the product or service purchased and remain valid for a reasonable amount of time. Consumers must also retain the right to a refund, although there is a good chance that they may have to wait a while. Consumers can report any company trying to take advantage of the situation to this supervisory body. The ACM will continue to take firm action against misleading advertising and scams during the corona crisis.   

Dispute Resolution Committee or lawsuit

Consumers who are not interested in a voucher and simply want a refund during the corona crisis may decide to go to the Dispute Resolution Committee or initiate legal proceedings to claim their rights. The question is whether this is truly in the consumer’s best interests, as legal proceedings are usually a costly and lengthy affair. Moreover, courts will only deal with urgent cases for the time being, so it is impossible to say when a ruling will be given. Nor is there any guarantee that the court will rule in favour of the consumer. It is up to consumers to decide whether or not to take this step. 

Advice of the ECC 

Every day, ECC Netherlands receives dozens of questions from (angry) consumers about vouchers and other corona-related issues. We fully understand why consumers might feel powerless. If a consumer books a flight or holiday that is later cancelled or buys a product that is never delivered, it is very understandable that they would claim a refund. After all, they are entitled to it. However, we recommend that consumers allow companies a little leeway for now. In most cases, accepting a voucher is simply the best option. It is important, however, that consumers carefully read the terms and conditions of the voucher before accepting it. Does the voucher have exactly the same value as the original purchase? Will the voucher remain valid in some way or another if the company were to go bankrupt? Can consumers still claim a refund at a later date? If all of the above is the case, accepting a voucher is a good alternative, as, in effect, consumers do not stand to lose anything by doing so. 

Any questions? Feel free to ask!

Consumers who have booked a flight or trip or who have made another purchase from a foreign company (based in the EU) and who have a question or complaint can get in touch with our legal experts. Consumers can also contact us for advice on accepting a (corona) voucher or for information on what steps they can take, such as initiating legal proceedings.