Government cracks down on online travel companies for COVID-19 refund delays

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Online travel companies must refund airfares for bookings during Covid lockdown, according to the central government. The Department of Consumer Affairs met with travel aggregators to discuss travel consumer issues…

The central government ordered online travel platforms to reimburse flight ticket bookings made during the COVID-19 pandemic shutdown by the third week of November.

From March 25, 2020, the coronavirus pandemic caused a statewide lockdown and the suspension of planned commercial airline services.

Consumer Affairs met with online travel aggregators to examine travel sector issues that harm consumers. The meeting, led by Consumer Affairs Secretary Rohit Kumar Singh, also addressed COVID-19 lockdown ticket non-refunds.

The consumer affairs secretary noted in the meeting that the National Consumer Helpline (1915) was receiving more complaints of ticket refunds despite Supreme Court instructions in Pravasi Legal Cell vs. Union of India (D.No. 10966 of 2020). The Supreme Court ordered full refunds for seats booked during the lockdown for travel during that time.
CCPA notices suo moi

The Central Consumer Protection Authority (CCPA) noticed this issue and sent notice to 6 online travel platforms: EaseMyTrip, Yatra, MakeMyTrip, HappyEasyGo, ClearTrip, and Ixigo, and 5 travel agencies: Thomas Cook, Kesari Tours, Veena World, Neem Holidays, and Mango Holidays.

All outstanding payments have been repaid by Ixigo and Thomas Cook. The consumer affairs ministry said HappyGoEasy is under investigation for not revealing the amount repaid or following instructions.

The CCPA is investigating vacation-services company Neem Holidays for irregularities. Three companies—Kesari Tours, Mango Holidays, and Veena World—have challenged CCPA refund orders in court.
Proceed with refunds by November’s third week.

The travel platforms were told to complete the refunds by the third week of November, otherwise CCPA may file a contempt petition against the defaulting platforms with the Supreme Court.

The discussion discussed integrating the National customer Helpline with the Air Sewa Portal to resolve customer complaints.

DGCA and Ministry of Civil Aviation personnel also noted that the Ministry has produced a “Passenger Charter” outlining passenger rights during air travel. The Charter should be promoted to consumers, including via the National Consumer Helpline.

“An Ombudsman for timely consumer grievance resolution was also considered. The Ministry of Civil Aviation and the Department of Consumer Affairs can collaborate on the details, the announcement said.

Nidhi Khare, Special Secretary, Department of Consumer Affairs, presented on online travel platforms’ “dark patterns” such as confirm shaming (showing ‘No, I will risk it’ during insurance add-on), showing pre-ticked checkboxes (for authorizing contact by platform, its affiliates, and associate partners), triggering alarm (‘last few rooms left’, ‘18 people are looking to book’), and forced action.

Major travel platforms like MakeMyTrip, Yatra, and ClearTrip attended the meeting. Pushpa Girimaji, a consumer campaigner, and Mumbai Grahak Panchayat Chairman Shirish Deshpande attended.

Conclusion

The Central Consumer Protection Authority (CCPA) has ordered online travel platforms to handle plane ticket refunds made during the COVID-19 pandemic lockdown by the third week of November to protect consumer rights. This injunction followed frequent complaints of ticket non-refunds despite a Supreme Court order requiring full refunds. Several travel platforms are under investigation by the CCPA for noncompliance. These initiatives demonstrate the government’s dedication to consumer protection and traveler rights.

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