Wedding Venues Warned Over Cancellation Charges


Posted March 3, 2016 by fashionyear

When their big days go wrong it can end up costing heartbroken couples thousands - but now competition authorities are urging wedding venues to play fair when it comes to cancellations.
 
When their big days go wrong it can end up costing heartbroken couples thousands - but now competition authorities are urging wedding venues to play fair when it comes to cancellations.

The Competition and Markets Authority (CMA) has written to 107 venues advising them that requiring large deposits and cancellation charges could breach consumer law.

They warn that some practices may mean the businesses effectively receiving "double compensation" because they end up taking more money from the consumer than the losses they suffer as a result of an event being called off.


The CMA said that together with consumer bodies it had been assessing the use of advance payments and cancellation terms including those used by venues used for weddings and other events such as anniversaries and birthday parties.



They found that these could include non-refundable deposits, advance payments and sliding scales of cancellation charges which in certain circumstances "may be unfair to consumers".

The CMA told the firms that it had not opened a formal investigation or made findings about them but based on its findings across the sector was recommending that they review and if necessary revise their terms.

Nisha Arora, CMA senior director for consumer, said: "Planning a wedding or any large event can be stressful. Consumers are particularly vulnerable when they are focusing on preparing for a special event and have paid significant sums up-front.

"Businesses need to treat their customers fairly and should not require unjustifiable, non-refundable deposits or impose unreasonable cancellation charges, which could mean customers lose a significant amount of money if they change their mind about the venue or have to call off the event."

Leon Livermore, chief executive of the Chartered Trading Standards Institute: "Getting married should be one of the happiest and most exciting days of a couple's life, but sadly it doesn't always go to plan.

"If a wedding has to be cancelled or plans have to be changed, couples could face losing out on considerable amounts of money after putting hefty deposits down to secure their dream venue or location."
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Last Updated March 3, 2016