LASCOPA: Lagos State Issues No Refund Policy Warning to Businesses

• The Lagos State Government has warned businesses against "No Refund, No Return, and No Cancellation" policies that violate consumer rights.
• LASCOPA clarified that company policies must comply with the Lagos State Consumer Protection Law 2025 and the Federal Competition and Consumer Protection Act 2018.
• Statutory consumer protections take precedence over internal business policies when conflicts arise.
• Businesses are urged to review their refund and cancellation policies to ensure legal compliance, though not all refunds are automatically guaranteed.
• LASCOPA has a strong track record, resolving over 11,000 consumer-rights cases and recovering more than ₦860 million in the past five years.

He emphasized that where internal business policies conflict with established statutory consumer protections, the applicable laws invariably take precedence.

The Lagos State Government has issued a stern warning to businesses operating within its jurisdiction, cautioning them against the use of "No Refund, No Return, and No Cancellation" policies that undermine consumer rights. This significant advisory, disseminated by the Lagos State Consumer Protection Agency (LASCOPA) via a statement shared on Facebook, underscores the state's commitment to upholding consumer protections. The agency's General Manager and Chief Executive Officer, Afolabi Solebo, delivered this crucial message during a mediation session held at LASCOPA's Ikeja headquarters.

The warning was prompted by a specific dispute involving a customer and an event centre. The customer had made a 50 percent deposit for a facility booking but subsequently sought to cancel the reservation. In response, the event centre's management reportedly cited its internal cancellation policy, insisting on retaining half of the total booking cost. This incident highlighted the ongoing tension between company-specific terms and statutory consumer entitlements, leading LASCOPA to reiterate the supremacy of legal provisions.

In addressing the contentious issue, Mr. Solebo unequivocally stated that all company policies and contractual terms must align with the provisions of the Lagos State Consumer Protection Law 2025, as amended, and the Federal Competition and Consumer Protection Act 2018. He emphasized that where internal business policies conflict with established statutory consumer protections, the applicable laws invariably take precedence. This stance clarifies the legal landscape for businesses regarding the "no return policy legality Lagos" and similar restrictions.

LASCOPA has consistently received numerous complaints from consumers who have been denied refunds, replacements, or other remedies by retailers and service providers. These denials are frequently justified by businesses citing their internal company policies, a practice that the agency is actively challenging. The agency has specifically cautioned against the deployment of broad disclaimers and restrictive contractual clauses designed to evade legal responsibilities, reinforcing the principle that consumer rights cannot be overridden by private agreements. This ongoing enforcement effort highlights the importance for businesses to understand the "Nigeria consumer protection refund" landscape.

While asserting the primacy of consumer protection laws, LASCOPA also clarified that these statutes do not automatically guarantee full refunds for every transaction. The entitlement to a refund, return, or cancellation is contingent upon the specific circumstances of each case and the relevant legal provisions. For instance, a customer simply changing their mind does not, by itself, establish a right to a refund. This nuance is vital for both consumers and businesses to understand, balancing consumer protection with reasonable business practices.

In light of these directives, LASCOPA strongly urged businesses to undertake a comprehensive review of their existing refund policies, warranty conditions, cancellation charges, and all contractual terms. The objective of this review is to ensure complete compliance with the prevailing legal framework, particularly the Lagos State Consumer Protection Law 2025. Simultaneously, consumers are advised to diligently examine terms and conditions before making payments, always request and retain receipts, and maintain thorough transaction records. They are also encouraged to report any suspected unfair business practices to the agency, reinforcing the "LASCOPA consumer rights warning."

Mr. Solebo revealed that LASCOPA has been actively investigating complaints over the past six months concerning business practices that allegedly undermine consumer rights. While some of these cases remain under investigation, many others have already been successfully resolved through the agency's intervention. This demonstrates LASCOPA's proactive approach to consumer protection and its commitment to addressing grievances.

The latest "Lagos State no refund policy warning" comes amidst LASCOPA's continuous efforts in handling consumer complaints across a diverse range of sectors. In a testament to its effectiveness, the agency reported in March that it had successfully resolved more than 11,000 consumer-rights violation cases over the preceding five years, recovering a substantial sum exceeding ₦860 million for residents. These complaints spanned critical sectors including banking, electricity, transportation, hospitality, education, and healthcare. A notable recent success occurred in April, when LASCOPA secured a ₦2.5 million refund for Peter Obidike, a Lagos-based engineer, after a transport company initially refused to take responsibility for goods damaged during transit from Abuja, highlighting the agency's impact on "Nigeria consumer protection refund" cases.

Lawyers and compliance officers should advise businesses operating in Lagos to immediately review their refund, return, and cancellation policies to ensure full compliance with the Lagos State Consumer Protection Law 2025 and the Federal Competition and Consumer Protection Act 2018, as LASCOPA is actively enforcing these provisions and statutory rights supersede internal company policies.

Source: Original reporting via PUNCH Nigeria