Deborah Chan
The COVID-19 pandemic has disrupted wedding plans for couples worldwide, with many venues cancelling or postponing bookings. This has led to a contentious issue of whether wedding venues are obliged to refund couples for cancellations or postponements due to the pandemic. While some venues have refused refunds, this may be in breach of consumer law, as outlined by the Competition and Markets Authority (CMA). The CMA advises that businesses should refund customers if they cancel or cannot provide a service due to government public health measures. This has resulted in a challenging situation for couples, who may face financial losses, and venues, which may face financial ruin due to the pandemic.
| Characteristics | Values |
|---|---|
| Wedding venues refunding couples | Many wedding venues have refused to refund couples whose weddings were cancelled or postponed due to the coronavirus crisis. |
| Legal responsibilities | Wedding venues may be breaking the law by refusing to refund couples. The CMA has outlined expectations for businesses to refund customers if they cannot receive a service due to government public health measures. |
| Consumer rights groups | Consumer rights groups such as Which? have reported wedding venues to the CMA and advised couples to seek full refunds. |
| Insurance | Some wedding venues have suggested that couples claim refunds from their insurers, but many insurers have refused to pay out. |
| Financial impact | Wedding venues have warned of financial ruin due to the pandemic and the cost of refunds. |
| Government advice | Governments have advised couples to seek refunds from venues and offered support to help facilitate refunds. |
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What You'll Learn
Wedding venues refusing refunds may be breaking the law
The Competition and Markets Authority (CMA) has outlined its expectations for businesses to refund customers if they cancel or cannot receive a service due to government public health measures. This includes any non-refundable deposits or advance payments and waiving any admin fees for processing refunds.
Consumer group Which? believes there could be an "industry-wide issue with wedding venues ducking their legal responsibilities on refunds and cancellations by using potentially unfair terms and conditions". Adam French, a consumer rights expert at Which?, said:
> While many wedding venues may have been financially impacted by the coronavirus crisis, couples who are likely to be devastated at having to cancel their big day should not be forced to bear the cost. The CMA is currently investigating this sector and must be ready to take firm action against venues found to be breaching consumer law so customers have some prospect of getting their money back.
Bijou Weddings, which has venues across the UK, has been accused of unfair practices. In May 2020, customers reported new contract terms that stated couples could postpone their ceremony due to the coronavirus pandemic, but made no reference to a refund. Bijou told Which? that the new contract uploaded to the site was a blank template and appeared due to an IT error. However, Which? analysed the new and pre-existing terms and conditions from a number of wedding venues, including Bijou, and found some that could be seen as unfair and unenforceable as they significantly reduce customer rights.
In the Philippines, the Department of Trade and Industry has also advised that couples who have already booked hotels and restaurants for their wedding venues can run to the government for help if they are having trouble with the refund.
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Couples losing tens of thousands of dollars
The COVID-19 pandemic has had a devastating impact on the wedding industry, with wedding venues losing significant amounts of business and couples facing financial losses due to cancellations and postponements. Many couples have reported issues with obtaining refunds from wedding venues, with some venues allegedly exploiting unfair terms and conditions to avoid issuing refunds. This has resulted in financial losses of tens of thousands of dollars for these couples.
In the UK, consumer groups such as Which? have received complaints from couples who have been refused refunds by wedding venues. Which? reported 12 venues to the Competitions and Markets Authority (CMA) after receiving complaints from 20 couples. One couple, Emily and Louie, expressed their heartbreak after being refused a like-for-like new date and a refund for their wedding at Bijou's Cain Manor, where they had paid over £20,000. Another couple, Adam Gibbs and Sarah Summerskill, were charged an 80% cancellation fee of £13,600.
Wedding venues have defended their actions by citing the financial impact of the pandemic and the need to cover costs incurred during the planning process. Bijou Weddings, for example, stated that they were "doing everything [they] can to navigate these very challenging times" and were considering each case individually. However, consumer rights experts argue that wedding venues may be breaching their legal responsibilities by using unfair terms and conditions. The CMA outlined its expectations for businesses to refund customers in most cases if they cancel or cannot receive a service due to government public health measures.
The issue of refunds has also been complicated by insurance policies. Many couples have been advised to claim refunds from their insurers, but insurers have refused to pay out, leaving couples at a loss. Additionally, some insurance companies stopped selling new policies in the midst of the pandemic, further exacerbating the issue.
The financial losses incurred by couples due to wedding cancellations or postponements during the pandemic have caused significant distress and heartbreak. While venues have also faced financial challenges, consumer groups and legal experts emphasize the need for fair and transparent practices to protect couples from bearing the full financial burden.
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Venues suggest claiming from insurers, but insurers refuse to pay out
The Competition and Markets Authority (CMA) has outlined its expectations for businesses to refund customers if they cancel or cannot receive a service due to government public health measures. This includes any non-refundable deposits or advance payments. However, wedding venues have been accused of exploiting 'unfair' terms and conditions to avoid refunding couples, which could be an industry-wide issue.
Bijou Weddings, for example, has been accused of introducing new contract terms that allow couples to postpone their weddings due to the pandemic without any mention of refunds. When venues have cancelled weddings, they have often asked for a high percentage of the cost as an admin fee, and suggested that customers claim the money back from their insurers. However, most insurers have refused to pay out for cancellations, leaving couples at a loss.
Insurers stopped selling new policies by mid-March 2020 following a surge in demand. However, those with existing policies have found themselves caught between venues that refuse to pay out and insurers with unclear policies or "exclusion clauses" that mean they do not have to pay out either.
If your claim is rejected by your insurer, you can escalate it to the Financial Ombudsman Service (FOS). This body will adjudicate over whether the firm should pay out, and it has the advantage of being free and considering not just the law, but also standard industry practice and fairness. If you paid your fees by credit card, you are also protected by Section 75 of the Consumer Credit Act, which means your card provider is jointly liable if something goes wrong.
If you haven't purchased insurance, another option is enlisting a solicitor. This can be a costly process, so carefully consider if it's worth it. Solicitors usually charge £250 to £700 to review the contract and send the venue a letter. If a claim went to trial, you could pay several thousand in legal fees.
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Venues using potentially unfair terms and conditions
Wedding venues have been accused of using potentially unfair terms and conditions to avoid refunding couples whose weddings were cancelled or postponed due to the coronavirus pandemic. Consumer rights group Which? reported 12 venues to the Competition and Markets Authority (CMA) after receiving complaints from 20 couples who were refused refunds. Many other couples have also been left out of pocket, losing tens of thousands of pounds.
Bijou Weddings, which operates venues such as Botleys Mansion in Surrey and Cain Manor, was one of the companies accused of unfair practices. In May 2020, several Bijou customers reported that new contract terms had appeared on the company's website, stating that weddings could be postponed if the original date was affected by the pandemic, but with no mention of refunds. Bijou claimed that the new contract was a blank template that had been uploaded due to an IT error. However, customers who had booked weddings at Bijou venues reported being charged an 80% admin fee and told to claim the money back from their insurer. Many insurers have refused to pay out, leaving couples with no recourse to recover their costs.
Which? analysed the terms and conditions of several wedding venues, including Bijou, and found some that could be considered unfair and unenforceable as they significantly disadvantaged customers. Adam French of Which? stated:
> "We believe there may be a serious, industry-wide issue with wedding venues ducking their legal responsibilities on refunds and cancellations by using potentially unfair terms and conditions. While many wedding venues may have been financially impacted by the coronavirus crisis, couples who are likely to be devastated at having to cancel their big day should not be forced to bear the cost."
The CMA has outlined its expectations for businesses to refund customers if they cancel or cannot receive a service due to government public health measures, including any non-refundable deposits or advance payments. The CMA is currently investigating the wedding sector and has advised couples to seek full refunds from venues, even if they have wedding insurance.
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Couples advised to seek refunds from venues, not insurers
The Competition and Markets Authority (CMA) has advised couples whose weddings were cancelled due to the COVID-19 pandemic to seek full refunds from their wedding suppliers, including venues, regardless of whether they have wedding insurance. This guidance is based on the expectation that, in most cases, businesses should refund customers if they cancel or cannot provide a service due to government public health measures.
Many wedding venues have warned that they face financial ruin due to the pandemic and have argued that the guidance does not consider the costs they have incurred, such as upkeep, planning meetings, and site visits. They have also claimed that they will make a loss if they have to pay full refunds. In response, the CMA has stated that it is currently investigating the sector and will take action against venues found to be breaching consumer law.
Some wedding venues have been accused of using potentially unfair terms and conditions to avoid issuing refunds. For example, Bijou Weddings introduced new contract terms that allowed couples to postpone their ceremonies due to the pandemic but made no mention of refunds. When challenged, Bijou claimed that the new contract was uploaded in error and that it was working to find solutions for affected couples.
While wedding insurance is intended to act as a ""safety net"" for when a refund is not possible, it has been reported that many insurers have stopped selling new policies and are refusing to pay out on existing claims. As a result, couples seeking refunds have been caught between venues that refuse to pay and insurers with unclear policies or exclusion clauses. In such cases, it is recommended that couples register their refund claim with the administrator and, if necessary, seek legal advice or use the Law Society's Find a Solicitor service.
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Frequently asked questions
Yes, the Competition and Markets Authority (CMA) has advised that businesses should refund customers if they cancel or cannot receive a service due to government public health measures. This includes any non-refundable deposits or advance payments.
Couples can file a complaint with the relevant authorities. In the UK, the CMA is currently investigating this sector and is taking firm action against venues found to be breaching consumer law. In the Philippines, couples can file a complaint with the DTI hotline 1384.
The CMA advises couples to seek full refunds from wedding suppliers, including venues, even if they have wedding insurance. In some cases, insurers have refused to pay out on claims.
Wedding venues should not offer rebooking instead of refunds. However, some venues have stated in their terms and conditions that couples can postpone their ceremony due to the coronavirus pandemic.
