CYP Now - Early years sector faces no action by consumer watchdog

The UK’s markets and competition watchdog will not take any enforcement action against childcare providers following a probe into alleged unfair treatment of consumers during lockdown, the Competitions and Market Authority (CMA) has said.

No actions will be taken against the sector, the CMA says. Picture: Lucie Carlier

The CMA included childcare and early years providers alongside wedding planners and holiday accommodation companies in an investigation over a rise in complaints relating to cancellations and refunds due to the Covid-19 pandemic.

In an open letter to the sector about the investigation, Gordon Ashworth, director of the CMA consumer group, found that “whilst the vast majority of providers were striving to reach fair arrangements with consumers in very challenging circumstances, there remained concerns that some were treating consumers unfairly.”

Ashworth’s letter advises providers to “take any necessary steps to ensure compliance with consumer law” noting three issues “which have caused some problems in the sector”.

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