Isle of Man Bay Festival 2011 ticket holders have been told that they will receive refunds after the event was cancelled earlier this year.
Those who bought passes to the event will be contacted by HMV Tickets with full refunds set to be processed by 13 September.
Officers from the Office of Fair Trading confirmed: “It would appear that consumers who bought tickets for the festival entered into a contract with the organiser.
“The cancellation of the festival may, therefore, constitute a breach of contract, in which case consumers would normally be entitled to a full refund.”
Ticket holders were told that the music festival was cancelled in May with Westlife and Tinie Tempah among thacts set to perform.
The Isle of Man Bay Festival 2011 was due to take place from 17–19 June in Douglas on the Isle of Man.
The BBC have predicted that cancellation has cost organisers £1.5 million.
The Isle of Man Bay Festival was a success in 2011 when the likes of Boy George, Olly Murs, Calvin Harris, Spandau Ballet, JLS, The Saturdays and Lemar performed.
At least 31 music festivals have been cancelled in 2011.