The refund process for festival tickets is 'not clear'
The refund process for Bay festival tickets is "not completely clear", according to a spokesman from the office of fair trading.
The music event, which was due to be held in Douglas from 17 to 19 June, was cancelled due to poor ticket sales.
An OFT spokesman said there was no reason to doubt full refunds would be paid but more information was needed.
Chief Officer Paul Gelling said: "Once the situation becomes clearer the Office can advise consumers further."
He added: "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."
Organisers said: "We will be processing refunds for those who have purchased tickets.
"To register for a refund please write to IOM Bay Festival Ltd, PO Box 1234, Peel, IOM, IM99 9YA on or before the closing date of 17th June 2011 enclosing proof of purchase and you'll be refunded on or before 29th July 2011.
"Please do not email or phone as claims for refunds can only be handled by post".
The Isle of Man OFT advise customers to follow these guidelines and to obtain proof of postage.
The line-up of the Isle of Man Bay Festival included Rapper Tinie Tempah and Pop group Westlife.