Refund N25m to aggrieved consumers, CPC orders tourism firm

Abdullahi Muhammad
Abuja

The Consumer Protection Council (CPC) has ordered VIP Express Tourism Limited to refund over N25 million to 63 aggrieved subscribers of its holiday packages, due to gross violation of their rights.
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timeshares on behalf of its members but once the member signs on to any of its packages, the contract cannot be rescinded neither can the member get a refund of monies paid because abinitio members were made to waive their cancellation rights upon signing the contract”.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.