Competition watchdog pauses Teletext probe to allow liquidation process of parent

The OTA was facing an investigation into COVID refunds before Truly Travel closure

The Competition and Markets Authority (CMA) has agreed to temporarily pause its court action against Teletext Holidays and Alpharooms.com to enable the liquidation of the companies.

The companies entered into voluntary liquidation on December 2, after liquidators were appointed to close down parent firm Truly Travel.

In October, the CMA launched legal action against Teletext Holidays over the company’s failure to pay refunds on 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 Alpharooms.com breached the Package Travel and Linked Travel Arrangements Regulations 2018.

“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.

“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 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.