Parliament Question: Unfair trade practice by travel companies

GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION DEPARTMENT OF CONSUMER AFFAIRS RAJYA SABHA UNSTARRED QUESTION No. 1155 TO BE ANSWERED ON 10.02.2026 UNFAIR TRADE PRACTICE BY TRAVEL COMPANIES 1155. SHRI BHUBANESWAR KALITA: Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to state: (a) whether the Central Consumer Protection Authority (CCPA) has taken any steps to stop unfair trade practices by travel companies; (b) whether CCPA took suo moto action in 2021 regarding non-refund of cancelled flight tickets due to the COVID-19 lock down; (c) whether CCPA has issued notices to online travel platforms and Airlines in 2021; and (d) whether CCPA has directed the travel platforms to publish refund procedures and status prominently on their websites? ANSWER THE MINISTER OF STATE, CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI B.L. VERMA) (a) to (d) : Department of Consumer Affairs is continuously working for consumer protection and empowerment of consumers by enactment of progressive legislations. With a view to modernize the framework governing the consumer protection in the new era of globalization, technologies, e- commerce markets etc. Consumer Protection Act, 1986 was repealed and Consumer Protection Act, 2019 was enacted. CCPA is empowered to initiate action against Unfair Trade Practices. Accordingly, CCPA in 2021 took suo moto action under Consumer Protection Act, 2019 alerting travel agencies to refund booking amount to consumers affected due to Covid-19 lockdown. Based on the grievances lodged at National Consumer Helpline and complaints received by Consumer Organization under section 17 of the Act regarding non refund of cancelled air tickets on account of COVID – 19 lockdown wherein the allegations raised in the complaint are grave, and impacted all consumers as a class. CCPA observed that the travel companies were prominently indulged in unfair travel practices wherein the Companies failed to take the steps taken by them to expedite the pending refunds. Therefore, the Central Consumer Protection Authority being a competent Authority to enforce rights of consumers as a class and to regulate matters relating to unfair trade practices and false or misleading advertisements, CCPA issued 11 notices to Travel Companies in 2021 namely Ease MyTrip, Yatra Online Limited, Make MyTrip, Happy EasyGo, Clear Trip, Ixigo, Thomas Cook, Neem Holidays, Mango Holidays, Veena World and Kesari Tours regarding non- refund of cancelled flight tickets due to Covid-19 lockdown.CCPA directed the Companies to make suitable modifications on their website by way of banner or pop up prominently highlighting the step by step process for claiming refunds of cancelled air tickets on the account of Covid-19 lockdown, refund status, information required for processing refunds etc. Also, the Travel platforms were urged to implement appropriate mechanisms to refund the booking amount affected due to covid-19 pandemic. Additionally, as per CCPA's directions, travel companies have refunded Rs. 1,454 Crores to consumers for cancelled flights due to the Covid-19 lockdown. CCPA has also mandated that these companies update their websites with clear instructions and status updates on refund claims related to cancelled tickets. ****