The impact of Covid-19 on the wedding industry
I am writing this blog both as a Father to be of 2 brides but also a specialist contract lawyer who suddenly gained a vast amount of experience dealing with the impact of Covid-19 on the wedding industry.
As the Father, to cut a long story short my eldest Daughter was due to get married on 29 March 2020. We were thrown into complete chaos and we made a decision, before Boris Johnson did, to postpone the wedding, especially when my Daughter was very poorly with Covid-19. Thankfully, all of the suppliers “rolled over” existing contracts and we pray and hope that the wedding will take place in mid-December this year.
My youngest Daughter is also due to get married in May next year and the thought of that not taking place as planned or with restrictions is a dreadful one.
However the purpose of this blog is to discuss and debate challenges for suppliers in the wedding industry and will try and keep it succinct and on a point by point basis:
- Contracts
Thankfully, most suppliers do have existing contracts and it would appear that couples have never been particularly resistant to executing and complying with the terms of a contract. However no one has really payed much attention to these contracts and unfortunately many are out of date and not fit for purpose. That is caused increasing worries and anxieties with suppliers.
- Insurance
It is a little bit hit and miss on whether couples do have wedding insurance. Those that do have hit problems and it is only John Lewis Insurance that have paid out, but that has also caused problems with John Lewis instructing solicitors to seek refunds from the suppliers by way of subrogation. Furthermore, those businesses in particular venues that do have business interruption insurance awaited with bated breath for the outcome of a High Court case.
- Consumer Rights Act 2015
This is an important piece of legislation and is designed to give consumers substantial rights in relation to the acquisition of goods and services. It is legislation which the courts will enforce but it is something that I have seen in correspondence especially when couples have gone to war with suppliers. A deep understanding of this legislation is required.
- The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013
Another important piece of legislation that consumers can rely upon. There is a big debate on whether these regulations apply in the wedding industry. My take is that a venue is probably one of the exemptions but there may be other suppliers who were caught out by the regulations known as the “cooling off period regulations” which give statutory rights to consumers to allow a contract to be cancelled within 14 days of execution. Failure to provide those cooling off periods can have a massive impact on the validity of existing contracts.
- Competition and Markets Authority (CMA)
A government quango which has quite wide powers and who poked their noses into the wedding industry criticising suppliers who have cancellation rights and onerous terms. The CMA have made threats to prosecute certain suppliers that one could argue have failed to understand how the contractual relationship works and the need to have cancellation provisions. The CMA have certainly not carried out any favours as far as the suppliers are concerned.
- The role of Government
Without being political, the Government do not appear to have any understanding about the wedding industry. On average there are 275,000 weddings in the UK, and it is a £10 billion industry where significant contributions are made to the Treasury via taxes. However, this has not helped in any way and decisions which are being implemented with effectively 24-hours has caused deep consternation in the wedding sector. However the Government does and can impose legislation which makes it difficult to allow suppliers to carry out duties and obligations pursuant to existing contracts.
- Health and Safety
The various rules and regulations and legislation has certainly made it difficult for suppliers. The impact of not complying with health and safety regulations could be quite dramatic with insurers threatening to withdraw cover. The whole aspect of health and safety is another added layer of bureaucracy but additional cost which the industry cannot afford right now.
- Threats of litigation
We started to see consumers turn nasty against suppliers. Litigation is the last thing any supplier would want to get involved with and there is a fear that litigation can be expensive both in the management time and legal costs. However most claims which we have seen are under £10,000 and would therefore fall within the Small Claims Court which means that could be considerable delays before any Judge would make a decision and arguments in relation to the contract and cancellation rights.
Summary
It is impossible to feel that no one is immune from the impact of Covid-19 on their lives and businesses. 2020 has effectively been a write-off for the wedding industry and we are waiting with bated breath to feel that we can go into 2021 with a high degree of confidence. It is estimated that a million couples will get married in 2021 but we are paying a price at the moment for a lack of a roadmap and the degree of uncertainty hanging over the country and the world generally.
For many suppliers, keeping their businesses alive is absolutely critical and we would strongly recommend they have the ability to seek independent legal advice in relation to contractual issues.
We at Front Row Legal have devised a speedy and efficient method of obtaining advice with an estimate of 1 hour at a fixed fee of £85 plus VAT. Please see www.legal-surgery.com for more information.
Richard Cramer on behalf of Front Row Legal Ltd.
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