Citing gross violation of rights, the
Consumer Protection Council (CPC) has ordered VIP Express Tourism
Limited to refund over N25 million to 63 aggrieved subscribers of its
holiday packages.
The order, which was signed by its
Director General, Mrs. Dupe Atoki, was the outcome of its investigation
into the operations of the company, following complaints alleging gross
abuse of consumers’ rights against the company.
The council’s investigation was informed
by the multiplicity of consumer complaints, concerning the quality of
service provided by VIP Express Tourism Limited and in particular
allegations that consumers of its services had been pressurised,
manipulated or deceived into contracts for the provision of vacation
accommodation services
VIP Express Tourism Limited is into
hospitality business through which it enlists subscriptions from the
public with the promise of facilitating subscribers’ holiday destination
desires after their completion of agreed payments.
According to the Council, “VIP Express
Tourism Limited purchases timeshares on behalf of its members but once
the member signs on to any of its packages, the contract cannot be
rescinded neither can the member get a refund of monies paid because ab
initio members were made to waive their cancellation rights upon signing
the contract.”
It explained further the
company’s business practice, which is designed in such a manner that
“after a 90-minute presentation, prospective clients must immediately
execute a 10-page contract and endorse 17 clauses containing a
non-rescission clause and a non-refund clause, without the benefit of
legal counsel, financial or other advise and in circumstances that do
not afford the client time to consider the offer, is unscrupulous,
obnoxious and exploitative.”
CPC alleged that the company’s
operational method was predatory and that its business practice in which
consumers were pressurised to unwittingly sign off their legal rights
to rescind or get a refund of monies paid was unethical and
exploitative.
The council contended that, contrary to
what has been obtainable in VIP Express Tourism Limited’s business
operations, international best practice allows for cancellation of
timeshare.
The council disclosed that its
investigation substantiated various allegations of violations of its
enabling Act, arguing that “the complainants having paid various sums of
money to the respondent at various times are entitled to a refund,
because the contract is obnoxious, unscrupulous, exploitative and
therefore cannot be enforced against them”.
CPC, therefore, directed the company to,
within 30 days of the receipt of the order, refund the total sum of
N25,062,223 to the aggrieved consumers, and that “in the event of
default pay interest thereon at the prevailing bank interest rate for
any day of default until final liquidation.”
The council also ordered the company to
within the same 30 days “review its contract agreements by removing the
clauses that waive the consumers right to rescind the contract and get a
refund and submit same to the council for review”, and that the
agreements must “specify the time within which prospective subscribers
may rescind the contract and be entitled to refund”.
It also directed VIP Express Tourism Limited to “ensure full disclosure of all material facts in all documents
to prospective subscribers to enable them make informed decisions”;
refrain from the use of unscrupulous and obnoxious methods of persuasion
to get customers to sign contracts; and to desist from the use of
predatory systems to get the consumers.
CPC also ordered the company to “provide a written consumer complaint and
redress policy with specific provisions regarding cancellation,
reservation, refund of subscribers’ monies” and to submit same to it for
approval within 30 days of the receipt of the order and post same on its website.
“The council in a statement by Deputy Director, Public Relations, Abiodun Obimuyiwa
also directed the company to “present written assurances in line with
Section 10 of the CPC Act that it would refrain from a continuation of
any conduct which is detrimental to the interest of consumers of their
services.”
By James Emejo in Abuja /Thisdaylive
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