LAGOS WARNS BUSINESSES AGAINST ‘NO REFUND, NO RETURN’ POLICIES

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By Aishat Momo. O.

The Lagos State Government has warned businesses operating in the state against using “No Refund, No Return and No Cancellation” policies to deny customers remedies guaranteed under consumer protection laws.

The warning was issued by the Lagos State Consumer Protection Agency (LASCOPA) following a dispute between a customer and an event centre over a cancellation charge.

The agency’s General Manager and Chief Executive Officer, Afolabi Solebo, gave the warning during a mediation session at its headquarters in Ikeja.

The customer had booked the event facility and paid a 50 per cent deposit but later requested cancellation of the reservation.

However, the event centre reportedly insisted on retaining 50 per cent of the total booking cost, citing its cancellation policy.

Reacting to the dispute, Solebo said company policies and contractual terms must comply with the Lagos State Consumer Protection Law 2025, as amended, and the Federal Competition and Consumer Protection Act 2018.

He maintained that where internal company policies conflict with statutory consumer protections, the applicable laws take precedence.

In a statement shared by the state government on Facebook on Wednesday, LASCOPA said it had continued to receive complaints from consumers denied refunds, replacements and other remedies by retailers and service providers based on internal company policies.

The agency cautioned businesses against using blanket disclaimers and restrictive contractual clauses to evade their legal responsibilities.

However, it clarified that consumer protection laws do not guarantee automatic full refunds in every transaction, noting that entitlement to a refund, return or cancellation depends on the circumstances and applicable legal provisions.

It added that a customer’s decision to change their mind does not, on its own, establish an entitlement to a refund.

LASCOPA urged businesses to review their refund policies, warranty conditions, cancellation charges and contractual terms to ensure compliance with the law.

It also advised consumers to examine terms and conditions before making payments, request receipts and retain transaction records, while reporting suspected unfair business practices.

Solebo disclosed that the agency had received complaints over the past six months concerning business practices allegedly undermining consumer rights.

He said some of the cases were still under investigation, while others had been resolved through the agency’s intervention.

The latest warning comes as LASCOPA continues to handle consumer complaints across various sectors.

In March, the agency announced that it had resolved more than 11,000 consumer-rights violation cases and recovered over ₦860m for Lagos residents within five years.

Solebo said the complaints covered sectors including banking, electricity, transportation, hospitality, education and healthcare.

In April, the agency also secured a ₦2.5m refund for a Lagos-based engineer, Peter Obidike, whose goods were damaged by a transport company during transit from Abuja.

The company had initially declined responsibility for the damaged item before LASCOPA intervened.