Tag: Consumer Protection Council

  • Consumer Protection Council: So far, so good

    Consumer Protection Council: So far, so good

    The Consumer Protection Council (CPC) has recorded many feats, including refund of cash to customers and prosecution of errant companies. Its Director-General, Mrs. Dupe Atoki’s unbending commitment to enthrone the consumer as king, has brought succour to many consumers, reports Temitayo Ayetoto.

    n assumption of office as the Director-General (DG) of the Consumer Protection Council (CPC), in May 2013, Mrs. Dupe Atoki unveiled a four-year strategic plan, which many experts gave a pass mark for being ambitious.

    The plan was directed mainly at sectoral intervention, enhanced consumer awareness and collaboration with other sector regulators.

    More than three years on, the need for an assessment of the body’s achievements, or otherwise has become imperative. Under the sectoral intervention, the CPC swept through the food and beverage, aviation and the banking sectors, among others. These sectors have hitherto been identified with pervasive consumer abuse tenderises. It was not surprising, therefore, that the CPC’s prying eyes were focused on these segments with the aim of identifying and redressing identified lapses.

    The DG at different fora, said the agency would adopt sectoral intervention approach using one company, in any sector to underline its seriousness and resolve to send a warning signal to others.

    Some Nigerians who spoke on their perception of CPC, emphasised  that the Council has, in the last two years, lived up to expectation. They nonetheless urged the agency to raise the level of its awareness campaign to to enable more Nigerians to benefit from its crusade against consumer abuse.

    Such campaigns, expectedly, would lead to increased consumer awareness, ensure consumers’ interests receive due consideration at the appropriate forum, and encourage trade, industry and professional bodies to develop and enforce in their various fields, quality standards designed to safeguard the interest of consumers.

    Today, consumer protection in the country is the better. Using all legitimate means to eliminate the scourge of consumer rights abuse in the market place, Mrs. Atoki, the  has won many cases. “This is why some of our people call her the ‘Iron Lady with a large heart’ for victims of abuse,” said the Chief Executive Officer, Shokam Ventures Limited, Kameel Shobowale.

    Indeed, she has demonstrated her resilience and resolve to protect and enhance consumers’ interest through information, education and enforcement of appropriate standards in respect of consumer goods and services. This has evidently restored consumers’ confidence in the agency and the Federal Government.

    Last year alone, the agency ordered the refund of money in local and foreign currencies of about N3 billion, $31,948.87 and 1,406 Euro to aggrieved consumers as compensation and in the resolution of their complaints on unsatisfactory services rendered and products supplied. The financial services sector recorded the highest value of the total amount, followed by the insurance and pensions segments.

    Speaking at a recent unveiling of the agency’s Annual Report for last year, Mrs. Atoki said out of the 5,000 complaints received across various sectors, 4,000 were resolved, while electricity/power had the highest complaints, the chemical and allied products’ sectors recorded the least.

    Mrs. Atoki said  the worth of substandard products removed from circulation was over N242.3 million, with food and beverages taking the largest chunk of over N200 million and tobacco, the least value of about N300,000. A breakdown of the products showed that substandard products worth over N202 million were seized from malls, supermarkets, shops, warehouses and other open outlets, while the value of electrical and electronic products seized during the period stood at N40 million.

    She attributed the positive strides made by the Council in the review period, particularly last year, to the adoption of sectoral intervention and other initiatives, which, she stressed, enabled the desired speed and spread to consumer redress.

    “It is a reflection of the work we have done to promote and protect the interest of Nigerian consumers. Consumer abuse in virtually all sectors was pervasive in the past. We deployed the sectoral intervention strategy in the satellite television service, food and beverage with particular reference to the beer industry, banking, hospitality, aviation and electricity sectors,” Mrs. Atoki said.

    The CPC boss said the agency’s searchlight was beamed on the pay-tv network. The move she stated,  was based on complaints of several subscribers over poor network services, lack of toll free lines for customers’ enquiry and incessant hike of bouquet prices among others, adding that but today, many consumers have attested to the better services of the pay.tv company. She nonetheless pointed out that some subscribers still feel that the service provider has still not done enough in terms of quality and affordable service delivery.

    In the hospitality sector, the Council recorded huge successes. A firm was compelled to refund over N25 million to 63 aggrieved subscribers of its holiday packages due to gross violation of their rights.

    The order was the outcome of its investigation into the operations of the company, following complaints alleging gross abuse of consumers’ rights against the company. The investigation was informed by the multiplicity of consumer complaints, concerning the quality of service provided by the firm, and in particular allegations that consumers of its services had been pressurised, manipulated or deceived into entering to contracts for the provision of vacation accommodation services.

    The DG said the company allegedly bought shares for its members, but that once the members signed on to any of its packages, the contract could not be rescinded neither can the member get a refund for payment because they had waived their cancellation rights upon signing the contract.

    In her words: “The company’s business practice says 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.”

    The intervention of the Council in the telecommunications, food and beverages sectors, according to her, was to safeguard advertisement/promotional/ information that are deceptive or misleading.

    On consumer education, the agency has paid more attention to grassroot sensitisation in addition to its informative weekly Television and Radio programmes, which generated a combined consumer awareness weekly outreach of 120 million consumers, in terms of viewership and listenership.

    Also, other issues and infractions on airlines/passenger unfair treatment  have been receiving CPC’s attention.

    Passengers of Turkish Airlines on Flight 623 from Istanbul to Abuja last December 25 and 31 and January 9, arrived their destination without their luggage. The Council’s consistent demand for a situation report on the incident was not honoured.

    The refusal of Turkish Airlines to respond to the Council’s Summons and the ultimatum of the Attorney-General of the Federation to the airline on the same request, led to the criminal prosecution of the airline and its Chairman and Commercial Manager, Mr. Liker Ayci and Mr. Rasak Shobowale, at the Federal High Court 10 in Abuja over alleged criminal violation of the Council’s Act.

    Atoki assured consumers that the agency was doing its best to police the market, sensitise consumers to their rights and responsibilities and at the same time, ensure that businesses are committed to fulfilling their obligations to consumers.

    “It is our hope that with the co-operation of all market players, our country will become a better consumer-friendly nation,” she said.

    Market watchers have, however, called on sister agencies to collaborate with the CPC in its drive to create a better environment to make consumers truly enjoy good value for money spent on goods and services. The CPC, on its part, has been advised to go back to the drawing board, so as to ensure sustained and increased positive intervention.

  • Baggage delay: CPC may  sanction Turkish Airlines

    Baggage delay: CPC may sanction Turkish Airlines

    The Consumer Protection Council (CPC) yesterday said it will sanction Turkish Airlines if it fails to comply with its directive.

    The sanction on Turkish Airlines, according to the CPC, is coming on the heels of failure by the airline to provide full situation report on the incident that led to complaints bothering on abuse of consumer rights .

    In a letter dated January 21,  last year, signed by its Director, Legal Services, Mr. Emmanuel Ataguba, CPC gave Turkish Airlines seven days to comply with its directive or face the full wrath of the law.

    Its Director-General, Mrs. Dupe Atoki, said the airline should have realised that the days of impunity when businesses ride roughshod on the rights of consumers are over.

    She said: “Apart from extant laws and regulations in the country, the operations of Turkish Airlines are bound by international standards and practices.

    “CPC will not allow any company to mete out to Nigerian consumers treatment that it will not subject consumers anywhere else in the world.”

    The director-general insisted that in the present case, regardless of whatever meetings Turkish Airlines claimed it had attended, the onus is on it to respond to CPC, showing clearly, with facts and figures, that it has satisfactorily resolved the complaints of consumer rights abuse leveled against it.

    CPC’s tough stance is coming on the heels of the lack-lustre approach of Turkish Airlines to complaints about its shoddy treatment of passengers on Turkish Airlines flight TK 623 of Sunday December 20 last year and other subsequent flights, which arrived Abuja from Istanbul during the Yuletide, without the baggage of passengers.

    The said passengers, some of who travelled with minors, including those whose destinations were outside Abuja, were allegedly subjected to untold hardships, as they were forced to check the airport in Abuja for their baggage, without any form of support by the airline

    Consequently, CPC requested the airline to provide it with a full situation report of the said events, including Turkish Airline’s policy on delayed baggage.

  • Making the consumer king

    Making the consumer king

    Consumer Protection Council’s rift with Coca-Cola as litmus test

    After a three-week vacation, and one in which I deliberately decided to rest my column, one should return pregnant with issues to deliver, especially given the flurry of political developments within the period. True, I was tempted not to suspend the column during my vacation in view of the (then) pending primaries of the major political parties, the most talked-about being those of the Peoples Democratic Party (PDP) and the All Progressives Congress (APC), which threw up the incumbent President Goodluck Jonathan and General Muhammadu Buhari, respectively, as contenders for the presidency.

    Gen. Buhari’s emergence has no doubt altered the political calculations, especially in the PDP which had probably hoped that the result of the APC primaries would be different. Anyway, this is not a matter for today. The issue is still evolving and I intend to leave it for now. Next year is going to be loaded politically and one needs to reserve one’s energy so as not to dissipate it on rehearsal when the real dance is yet to come.

    I want to devote this piece to an issue that I had kept postponing since it began early in the year to attend to what appeared to me to be the real burning issues, national or international. But, I have to break that jinx today because the matter is also a burning issue in its own right; first because of the lives of the millions involved and also because of its wider implication for protecting public watchdogs in the country.

    It is the issue between the Consumer Protection Council (CPC) and two big players in Nigeria’s food and beverage sector, Coca-Cola Nigeria Limited (CCNL) and its franchise bottler, Nigeria Bottling Company (NBC) Ltd. The CPC had, following a complaint by a consumer that he bought two half-filled cans of Sprite, one of the products produced by the companies, issued an order on the companies in February, 2014, with specific timelines for compliance. This was sequel to an investigation which spanned over five months and entailed factory inspections, written and oral representations and analysis of evidence, pursuant to the consumer complaint. Eventually, the council fined the companies N100m, which they are contesting in court. For me, the fact that this has been challenged in court is a good development.

    It is true that Nigeria needs investors, but I detest this impression that these foreign companies are doing Nigerians a favour by operating here. It is true that our operating environment is not that business friendly but this should not be an excuse for people to give us subhuman treatment. Some people even wonder about the big deal in having half-filled cans of a beverage. It is difficult to blame such people given where we are coming from. The point is, we have been so dehumanised that we do not even know that we have rights as human beings. How many people here, for instance, know that there is something called ‘consumer product recall’ in which millions of defective products are withdrawn from the market in order to protect the consumer? In civilised climes where this occurs, the overriding consideration is not the loss to the companies but the health and safety of the citizens and consumers. These big companies know all these and more; they know how they are forced to shell out huge sums in compensation over some of the things we consider non-issues here.

    In the specific Sprite case, key findings of the investigation revealed that the cans of the soft drink were defective, that the companies neither had a written shelf-life policy for their products nor an implementation plan outlining practical steps for the implementation of the companies’ first in first out (FIFO) rule.  The investigation also revealed that the companies’ grievance resolution policy does not properly address compensation for injury or compensation in instances where replacement will be inadequate.

    It is only if we want to deceive ourselves that we would pretend that these defects are not there, not only with Coca-Cola products but with many other producers’ as well. We have had cases of people who saw cockroaches in bottles of their soft drinks. We have had cases of people reporting other particles in the drinks. Some of these are easily detectable if the drinks are not coloured; but detection is difficult in instances where they are, as one might even have started to consume the content before seeing the strange objects.  This could be the handiwork of some competitors in situations of unhealthy rivalries in which producers of similar product try to outdo one another. It could also be the result of laxity in quality control from the manufacturers. Whichever it is, it is not good for the consumers. And this is why governments all over the world create agencies to monitor manufacturers to ensure that they produce products to standard.

    On a personal, Coca-Cola is my favourite soft drink and it is likely to remain so until I find a better alternative. But I have also had cause to complain to the woman selling it on our premises on not less than two occasions that the taste of the product was different from the usual one. As a matter of fact, the usual gas released when the bottles are opened was conspicuously missing on all occasions that I experienced such. She would always ask me to come for replacement but I never did.

    I know that ignorance is no excuse in law; but I must confess that much as I am usually particular about the expiry dates of most other items I buy, including milk, butter and margarine, it never occurred to me that soft drinks have a shelf life-span. And if at my level I do not know, I wonder the millions of Nigerians who suffer such ignorance. But then, it is hard to blame anyone for this as not much emphasis is placed on the producers inscribing the expiry dates conspicuously on their bottles as do the manufacturers of drugs, cosmetics, etc. I think they are just beginning to do that. I guess too that I am part of the problem because I had always kept the defects in the product to myself and the retailer. But again, there is a limit to how far you can push such a case once the drink has been opened. You need all the angels in heaven swearing in order to prove that you are not trying to play a fast one on the company so as to make some quick money.

    The point is that the CPC needs the support of all in its bid to ensure that sanity is brought to bear on the beverage sector and in other sectors where it has jurisdiction. It is good that the Federal Government has waded into the matter by dragging the soft drinks companies and their chief executives to court for alleged criminal breach of Consumer Protection Council (CPC) Act. Early in the year, the council ordered the management of Aero Contractors Company of Nigeria Limited to compensate 39 passengers on its flight AJ132 of November 8, 2013 who were abandoned at the Abuja International Airport and left stranded overnight. Aero Contractor Airlines was ordered to pay N41, 000 each to the passengers, bringing the total fine to N1.599million. Such an agency is not likely to be popular with the corporate players it is supposed to regulate their activities in our kind of environment where many other public watchdogs are compromised.

    Although the practice of not wanting to abide by global standards is common even among many Nigerian companies, it is particularly worrisome that multinationals that should know better are in the forefront of this. What is particularly perplexing is that some of them even have different standards for the Nigerian market and do all kinds of things which they dare not in their home countries or even in some other African countries here apparently because no one cares about anything in Nigeria, or at least so they think. That is why they would have the temerity to threaten to have removed any chief executive of a supervisory agency who is not prepared to play ball with them. There is no way the  consumer will ever wear his crown as king if we continue to tolerate such nonsense.

    Thank you all

    I was away for just three weeks but some of my readers made it look like I had been off duty for far longer the way they kept asking what happened. I guess that was because I proceeded on the vacation unannounced in the first week. Thank God I am back. I am particularly grateful to Simon Oladapo, a regular reader of this column who got married on December13. He was the first person who called to find out what the matter was.

    I thank you all and wish you a happy New Year in advance.