Tag: cpc

  • CPC beams searchlight on hospitality firms

    The Consumer Protection Council (CPC) has beamed its search light into the operations of a Nigerian hospitality company, VIP Express Tourism Limited, following complaints alleging gross abuse of consumers’ rights.

    The Council’s action was informed by the number of complaints against the company, some of which alleged that the company reneged on its terms of agreements with consumers on their subscriptions to its hospitality packages.

    VIP Express Tourism Limited is into hospitality business through which it enlists subscriptions from members of the public for their future holiday investments with the promise of facilitating subscribers’ holiday destination desires after their completion of agreed payments.

    According to some of the complainants, VIP Express Tourism Limited, which has affiliates in South Africa, allegedly reneged on the agreement to provide the desired holiday destinations to them upon completion of their subscription payments, while some others accused the firm of misleading them with mis-representation of facts.

    Other allegations against the company included exertion of undue influence on their subscribers, making them to sign documents immediately after presentations without proper perusal and understanding of the terms as well as accompanying intending subscribers to homes to pick cheques late at night, among others.

    The Council few weeks ago began investigation into the allegations and has taken responses from the company on the consumer complaints against its operations and activities.

    CPC, in continuation of the investigation, has summoned the company’s Chief Executive Officer and two others, identified as Owoseni Samuel and Isaac Omagbemi to further answer enquiries about the allegations contained in the consumer complaints.

    The Council, in its summon sent on September 2, 2015 to each of the company’s officers invited, hinted that they are being invited to “testify, make depositions and provide evidence in relation to the allegation of consumer abuse leveled against the company”.

  • CPC probes DISCOS

    CPC probes DISCOS

    The Consumer Protection Council (CPC) has started investigation into indiscriminate increases in electricity bills, non-supply of metres to consumers, irregular disconnection with an assurance of prosecuting the electricity companies if there are no strong reasons for what they are doing.

    CPC Director-General, Mrs. Dupe Atoki, made this known at the opening ceremony of investigation into complaints of alleged consumer abuse  in Abuja.

    The investigation is being held behind closed doors after the opening ceremony.

    She said the Council will ensure speedy redress to consumer complaints, ensure consumer interest receive due consideration.

    She said CPC has carefully watched the ongoing reforms in the electricity sector, which commenced with the enactment of the Electric Power Sector Reform (EPSR) Act of 2005 and the unbundling of the erstwhile Power Holding Company of Nigeria (PHCN) by the Federal Government.

    “Two years after the privatisation of electricity distribution in the country, consumers are still groaning over almost all issues that existed in the old order, she said.

  • CPC summons DISCOs over alleged ‘crazy bills’

    CPC summons DISCOs over alleged ‘crazy bills’

    Inundated with consumer complaints over exploitative electricity billing, the Consumer Protection Council (CPC) has summoned all electricity Distribution Companies (DISCOs) in the country to a hearing over alleged outrageous billings, based on estimated consumption.

    The CPC, in response to complaints of electricity consumers on estimated billings and non-provision of meters, summoned each of the DISCOs, warning that absence of any of the companies at the hearing would be regarded as a violation of its enabling Act.

    The CPC, in a letter dated August 26, this year and signed by its Director-General, Mrs. Dupe Atoki, September 7 this year for hearing on the complaints.

    The agency, in its letter, stated that it “has been inundated with complaints commonly referred to as ‘crazy billing’, through which DISCOs are alleged to arbitrarily determine consumption level of consumers of electricity and bill them accordingly”. It  added that it also “received complaints that many consumers have paid for meters for periods spanning over 12 months, but are yet to be supplied same by their respective DISCOs”.

    It pointed out  that pursuant to these complaints, it has decided to commence investigation to “enable your organisation as well as other DISCOs make representation and state your position regarding the said complaints, particularly as they affect consumers in the area of your coverage.

    “You are, therefore, by this letter summoned to attend, make representation and submit a status report on the aforementioned complaints in your area of coverage, including any other document or evidence, to support your position at the hearing”, the Council declared.

    CPC, in its letter, cautioned the DISCOs to be “guided by Section 18 of the CPC Act that criminalises disobedience of its summon, which include neglect or refusal to attend and testify before the Council or to answer any lawful enquiry or to produce any document as may be required”.  It advised  the companies to “note that, whether you attend or not, far reaching decisions, which may be of consequence to your operations, may be taken after the hearing”.

  • CPC begins consumer voice on TV

    The Consumer Protection Council (CPC) has begun a consumer education television programme to equip consumers with the necessary skills for their market interactions.

    The Council, in a statement, disclosed that the new move was designed to raise the bar of consumer education for Nigerian consumers to assume their rightful position in their interactions in the market place.

    The public enlightenment, which it said would rent the airwaves beginning from this week, would commence with the television programme on the network of the Nigerian Television Authority (NTA).

    According to the Council, the programme, tagged: “Consumer Voice”, which will be broadcast by 8pm every Thursday.

    The agency pointed out that the programme would treat topical consumer issues weekly, pointing out consumers’ rights and responsibilities as well as arming them with the necessary skills for an informed consumption.

    The new leadership of the Council had on assumption of office about two years ago, identified low consumer education as one of the causes of consumer lethargy and has been introducing a number of initiatives to correct this.

    To ensure the sustainability of the new effort, the Council was able to secure some support from an international development partner, the Ford Foundation, to build an ultra-modern audio-visual studio within the premises of its headquarters in Abuja

  • CPC investigates DSTV’s operation

    CPC investigates DSTV’s operation

    THE Consumer Protection Council (CPC) has begun sitting in its investigation into the operations of the Digital Satellite Television (DStv) based on complaints of alleged consumer rights violations against the pay-television firm.

    A four-man team, led by the firm’s Regulatory Affairs Manager, responded to questions from the council’s investigating panel, comprising of selected relevant staff of the agency and a team of consultants.

    CPC’s Director General, Mrs. Dupe Atoki, who at the weekend flagged off the commencement of the investigation at the headquarters of the agency in Abuja, said the investigation has been instituted on the strength of series of complaints received by the council on the services of the pay-television firm.

    According to her, the investigation would afford the council the opportunity to know the challenges the firm may be facing in the discharge of its services with a view to proffering solutions for the enhanced welfare of its consumers.

    The council had, in a notice of commencement of investigation recently served on Multichoice Nigeria Limited, a pay-media company which offers the DStv service, disclosed that it has been inundated with a barrage of consumer complaints, alleging wide-range abuse of subscribers’ rights.

    It asserted that despite its earlier interventions in form of meetings with the Satellite Company, telephone and written correspondences with a view to ensuring that the company addressed the issues and developed quality standards for the safeguard of the interest of consumers, complaints have been pouring in unabated against the company.

    The council declared in the notice that “these complaints in effect allege that the DStv service does not conform with international best practice and is specifically designed to exploit Nigerian consumers who have suffered loss by not being able to fully enjoy or receive the benefit or actualise the full purpose for which they purchased or subscribed to the service”.

    According to the council’s notice, the consumer complaints against DStv include “poor quality of service such as incessant disruption of service without compensation while subscription is current; wrongful abrupt disconnection of service during subsisting subscriptions; monthly subscriptions lasting less than 30 days; and poor redress mechanism and customer services”.

    The first sitting of the investigation was witnessed by a delegation of the National Broadcasting Commission (NBC), the Specific Sector Regulator.

     

  • Defective cars: CPC demands status report from Toyota, others

    The Consumer Protection Council (CPC), as part of its efforts at safeguarding the interest of consumers, has requested franchise holders of four top world’s car brands in Nigeria to within seven days provide information on the status of their vehicles in relation to the faulty front passenger airbag inflators, which have prompted the recall of the brands’ implicated models from the market worldwide.

    The council, determined to ensure Nigerian consumers, who purchased these implicated models from the franchise holders are not left out of the recall policy, had communicated its position to Toyota Nigeria Limited, Nissan Nigeria Limited, Honda Automobile West Africa Limited and CFAO motors Nigeria, the franchise holders for Mitsubishi vehicles in Nigeria.

    CPC’s action came on the heels of the global recall of certain models of the brands from the market due to their front passenger airbag inflators’ defects. Toyota is reportedly recalling 2.86 million vehicles, equipped with certain front passenger airbag inflators in addition to a total of 12.66 million units already recalled. Honda had recalled 19 million, Nissan is to recall 198,000, while Mitsubishi is to also recall 120,000.

    More compelling for its intervention, the council disclosed that it has begun to receive complaints regarding burst airbag, which has a correlation with the reason for the on-going recall of vehicles across the world.

    The government’s agency, in its letter to each of the brands’ franchise holders in Nigeria and signed by its Director General, Mrs. Dupe Atoki, demanded a brief on the issue of the faulty passenger airbag inflators, efforts at sensitising the affected customers and the measures at recalling the faulty vehicles.

    The council’s letter requested each of the franchise holders to within seven days of the receipt of the letter, furnish the council with information on the status of their vehicles in Nigeria “in relation to concerns on the faulty front passenger airbag inflators and measures being taken to sensitise affected consumers and facilitate a quick recall of such vehicles in Nigeria, if any”.

    The council hinted that it has initiated the action in order to ensure that consumers, who purchase these vehicles, are not left out of the benefits of the global recall policy of the auto makers and the compensation fund that may be set up globally for affected consumers because “Nigeria is a very big market, where thousands of consumers purchase and currently possess” these brands of vehicles, which are put to personal and other uses.

    The recall of the different models of vehicle brands worldwide was sparked off by announcement from the airbag maker, Takata, that millions of vehicles recalled could have been equipped with airbags that shoot shrapnel into drivers and front-seat passengers upon deployment.

    Takata Chairman and Chief executive Officer, Shigehisa Takada, according to media reports, had, at a recent news conference in Tokyo, apologized for the crisis, saying his company was considering ways to help victims, including the setting up of a fund to compensate the affected consumers.

    According to the media reports, the defect, thought to be linked to a chemical propellant that helps inflate the airbags, can cause them to deploy with explosive force, sending metal shrapnel towards drivers and passengers.

    The defective front passenger airbag inflators have been reportedly implicated in several deadly accidents, which have resulted in eight deaths worldwide.

  • CPC, NEMSA sign deal on  electricity consumers’ protection

    CPC, NEMSA sign deal on electricity consumers’ protection

    Consumer Protection Council (CPC) and Nigerian Electricity Management Services Agency (NEMSA) have indicated their readiness to provide redress for electricity consumers following a deluge of complaints.

    The two agencies yesterday signed a Memorandum of Understanding (MoU) in Abuja for NEMSA to provide technical data or advice with which the CPC can pursue redress for electricity consumer.

    The deal was inked after the CPC extended “a hand of fellowship to NEMSA for a synergy to address complaints from electricity consumers”.

    NEMSA, according to the MoU, will provide technical data on how companies have contravened electricity rules for CPC to pursue redress for consumers.

    Its Chief Executive Officer, Peter Eweso, an engineer, assured the council that there would be continuous consultation on consumers’ affairs.

    He noted that should NEMSA discover anything affecting electricity consumers, it would bring it to the notice of the CPC.

    Ewesor added that the agency would follow up such issues with reports on its observation.

    He urged stakeholders, including CPC’s workers, to furnish NEMSA with information of suspicious inferior electrical installations and equipment for onward solution before they wreck havoc on the citizenry.

    “I want to thank you for this opportunity for us to sign this MoU today. I want to say that we will continually have consultations on issues and if we see anything that has to do with consumer, which you are not even aware, we will actually make sure that this is brought to your table, followed up with a report on what we have observed so that you can actually follow it up and seek redress.”

    CPC Director General Mrs. Dupe Atoki insisted that it was impossible for agency of government to operate without cooperating with relevant other agencies.

    “That is why one agent of government cannot claim exclusive jurisdiction in its area of operation,” Mrs. Atoki said.

    According to her, there is currently a deluge of complaints emanating from electricity consumers to the council.

    She said working with any relevant agency to minimise the complaints would be heartwarming.

    Her words: “We do know that there are huge complaints that emanated from the supply of electricity to Nigerians. Of course, we will be glad to have the situation where we will be working with any of the relevant agencies to minimise the complaints.”

    But the NEMSA Chief Executive Officer has described any other technical inspector in the Nigerian Electricity Supply Industry (NESI) as an interloper.

    Its rival agency, Nigerian Electricity Regulatory Commission (NERC), had last week appointed 14 inspectors, maintaining that the act that established the commission empowers it to do so.

  • Consumer rights violation:  MultiChoice pledges  to cooperate with CPC

    Consumer rights violation: MultiChoice pledges to cooperate with CPC

    MultiChoice Nigeria, promoters of DStv, have promised to cooperate with the Consumer Protection Council (CPC), which recently announced its intention to probe alleged consumer rights violations by the pay-TV company.

    MultiChoice was responding to media reports on yesterday that a notice of commencement of investigation into a range of alleged customer rights violations had been served on it by the CPC.

    In a statement yesterday, the pay-TV provider said it recognises the role of the CPC as the body established to ensure the respect of consumer rights, adding that it welcomes its intervention and is willing to cooperate fully with the CPC when it begins its investigation.

    Its Public Relations Manager, Caroline Oghuma said: “We welcome any inquiry into our operations and we assure the CPC of our full cooperation at every step of the inquiry.

    “We are in total support of any inquiry that will lead to improvement in our services to our subscribers and we hope that the outcome will deliver improved services to Nigerians.

    “As a company that puts  premium on our relationship with subscribers, we will embrace any intervention that will lead to a better customer experience.”

  • ‘Why CPC cannot register products’

    The plan by the Consumer Protection Council (CPC) to register manufactured products in the country has been condemned by the Lagos Chamber of Commerce & Industry (LCCI).

    Condemning the move, the chamber said the law did not support  CPC and that the exercise smacked of usurping and duplicating the roles of the Standards Organisation of Nigeria (SON) and the National Agency for Food Drugs and Control (NAFDAC).

    “Compelling businesses to register with the CPC is, therefore, most unnecessary and an additional regulatory burden on the private sector.

    “We call on the relevant authorities to prevail on the CPC to discontinue this course of action. It is, in fact, imperative for the incoming administration to undertake a comprehensive audit of the regulatory environment to identify and eliminate all areas of overlapping functions of regulatory agencies,” LCCI President, Alhaji Remi Bello, said.

    Briefing reporters in LCCI Lagos office, Bello took a swipe at the power sector reforms, insisting that the burden of high cost of energy for investors have persisted and remained one of the biggest issues in the investment environment.

    “The power sector reform and the privatisation that followed have not achieved the desired result. It has, therefore, become necessary for the incoming administration to undertake a holistic view of the power sector reform. This should cover the processes of the reform and the capacity of the major institutions in the power delivery chain,” he said.

    He, however, acknowledged the profound financing gap in the economy, noting that the gap exists for investment in both the private and public sector. He said: “The emphasis on the drive for foreign investment should be on Foreign Direct Investment (FDI) and investment in infrastructure. In recent years, the economy has witnessed a disproportionate inflow of portfolio investments, which turned out to be a major source of volatility in the economy, leading to significant shocks.”

  • CPC vows to curb consumer rights abuses

    CPC vows to curb consumer rights abuses

    The Director General, Consumer Protection Council Nigeria (CPC), Dr. Dupe Atoki, has declared that the council will curb consumer rights abuses in the country by forcing the major companies to comply with international standards.

    Noting that the telecoms, aviation, banking and power sectors have the highest level of consumer rights abuses, she said the CPC has adopted major strategies of enforcing consumer rights and ensuring company’s compliance with the council’s enabling laws.

    These strategies, she said, are sectoral intervention, litigation and improving the visibility of the council by using new methods and the redress of consumer complaints. These strategies, she said, are already yielding positive results.

    Speaking at a public lecture organised by the Centre for Human Rights, Faculty of Law, University of Lagos, the CPC boss said that a successful intervention in the activities of usually the dominant player in a given sector resonates into a bandwagon compliance and block adherence to regulation and best practice.

    Atoki explained that “Sectoral intervention was identified as a major strategy for the evaluation of business operations under the various sectors in order to arrest identified adverse trends and thereby resolve individual complaints in the long run.”

    She explained that this strategy is intended to focus on a sector by undertaking in-depth analysis of consumer complaints and total evaluation of business practices to identify systemic irregularities.

    She noted, albeit happily, at the lecture entitled “The state of consumer rights protection in Nigeria”, that the council has already carried out successful major interventions in the food and beverage and aviation sectors which modified the behaviours of all the other players in those sectors for best practices.

    In order to enforce consumer rights, she said that CPC also has the strategy of criminal prosecution of recalcitrant businesses or litigation to achieve satisfactory redress, which is already paying dividends.

    Acknowledging the low awareness of consumer rights in the country, Mrs. Atoki said that the council was undertaking different measures to ensure increased knowledge of consumer rights and responsibilities.

    These measures, she noted, are hosting of consumer roundtable on phone rights, publication of a compendium of the rights of telecom subscribers, launch of ‘Check the Best Before Date’ campaign.

    Other measures, according to her, are revamping and updating the council’s website on a regular basis, using of social media to interact with consumers and establishing a strong media presence with a view to remaining in the consciousness of consumers.

    Lamenting the wanton gross consumer rights abuses also in sectors such as satellite television, land transport, property, hospitality, food and beverage, home appliances, automobile and electronic commerce, the council’s boss regretted that “while free market is currently operational in Nigeria, all forms of consumer abuse still pervade virtually every sector of the economy denying consumers their rights.

    Highlighting the abuses, she said that in the telecom sector, for instance, “consumers still contend with drop calls, unsolicited texts, calls, poor network, credit wipe off, amongst others, while consumers in the aviation sector experience regular delays and cancellation of flights without notice, damage and loss of baggage without compensation etcetera.”

    In the banking sector, she said consumers experience ATM dispense error cases with prolonged resolution period, POS terminal issues, unexplained debit on consumer accounts. Equally, in the power sector, “consumers complain of outrageous estimated billings, non-provision of transformers, metres, wrongful disconnections and inadequate electricity supply.”

    In the satellite television sector, she regretted that consumers were also struggling with regular disruptions, wrongful connections, poor service delivery and lack of redress for complaints. “Overloading, non refund of money when vehicles breakdown and use of dilapidated vehicles add to the burden of consumers of public transport services,” noted Atoki.

    Similarly, Dr. Dupe Atoki lamented that “In the property sector, developers fail to keep to agreement terms, tie down consumers’ deposits for prolonged period and sometimes deliver substandard houses to consumers.”

    Consumers under the hospitality sector were identified as not free from the abuses as “many hotels fail to live up to their claims/required standard, while vendors of holiday packages do not deliver on promises made.” Food and beverages industry are also guilty, said the DG, as foreign substances in drinks, sale of expired products, adulteration, improper storage, short measure, etcetera are rampant in the sector.

    “Undiscerning consumers go home with substandard home appliances while non adherence to warranty by car dealers, sale of substandard spare parts, unqualified mechanics and ill-equipped workshops result in safety issues and loss of consumers hard earned money,” bemoaned the DG.

    In the electronic commerce, the council’s DG lamented that the infringements of consumers’ rights here were completely unfair and potentially dangerous to the consumer. She said some of these abuses in this sector were unsolicited commercial communications and unfair use of personal information.

    However, while the agency is cognisant of its challenges and having evolved some strategies to deliver on its mandate within available means, Mrs. Atoki still stressed that several factors were militating against the council’s bid to effectively protect the over 160 million consumers across all sectors of the economy whose rights are wantonly abused.

    According to the DG, these factors are “perceived overlapping duties of regulatory agencies, impunity of business-peddling of influence, protection of self-interest by trade associations, lack of consumer awareness and apathy, inadequate funding, inadequate spread, understaffing and dearth of specialised staff, gaps in the CPC Act.”

    Underscoring the point, Atoki said “Market failures violate consumer’s rights and inhibit their welfare in the marketplace. Impunity of businesses, rivalry among regulatory bodies due to seeming overlapping functions and protection of self interest by trade associations are part of the challenges inhibiting the effective protection of Nigerian consumers.”

    Nonetheless, she asserted that genuine businesses must comply with regulations and specified standards for goods and services in the country adding that the political might of the federal government must be available to support the council at all times to put recalcitrant businesses in check.

    She urged regulatory agencies to collaborate with each other in order to foster seamless relationship in the regulation of businesses to ensure effective protection of consumers.

    “The council recognises the need for aggressive consumer awareness campaign. However, consumers should be more aggressive, proactive and disposed to complaining when dissatisfied with a product or service,” adding that mere grumble is not an option.