DStv: What manner of raid by CPC
The recent raid of DStv office by officials of Consumer Protection Council of Nigeria, CPC, for subscribers’ data and other vital information for what the regulatory agency described as consumer protection action has come under scrutiny.
Media analysts are still confounded on what could cause such raid on a multinational organization where CPC officials stormed with police penultimate week demanding for various documents and company’s data. At the end, they left with laptops and some vital documents belonging to either DStv or its staff.
According to CPC, the action was informed by plethora of consumer complaints over abuse of their rights.
The alleged abuse of consumer rights, it was said include “poor quality of service, such as incessant disruption of service without compensation, wrongful disconnection of service during subsisting subscriptions, decoder swap irregularities and poor redress mechanism and customer service.”
Reactions on the invasion
It is yet to be understood by media analysts why CPC took the option of invading the DStv office and seizing some equipment belonging to either DStv or the staff instead of investigating the matter and allowing MultiChoice to pay compensation as the law demands if found guilty of consumer rights abuse.
Mike Nzeagwu, a media practitioner who would like to see amicable resolution of issues between companies and regulatory agencies, including CPC believed that whether the raid was motivated by court order or warrant it doesn’t send a good signal to raid an organization in that manner.
“There should be deep dialogue on consumer issues between organizations. The intention of the raid may be good but the manner in which it was executed leaves much to be desired”.
Charles Igbinidu of TPT International, a PR agency said he does not have enough information on the raid. He also said he does not also have the Act that set up CPC whether it empowers the agency to raid an organization but believed that in a democracy there should be rule of law.
CEO of a media agency in Ikeja who prefers anonymity described the raid as a little bit unorthodox “For a company like DStv, the manner of the raid was unorthodox. The action supposed to follow a very civilized manner so that there will be civility in the conduct.
The functions of CPC, according to the law establishing it include to provide speedy redress to consumers complaints through negotiations, mediation and conciliations; cause an offending company, firm, trade, association or individual to protect, compensate, provide relief and safeguards to injured consumers or communities from adverse effects of technologies that are inherently harmful, injurious, violent or highly hazardous.
It also has the functions to organise and undertake campaigns and other forms of activities as will lead to increased public consumer awareness; encourage trade, industry and professional associations to develop and enforce in their various fields quality standards designed to safeguard the interest of consumers; ensure that consumers’ interests receive due consideration at appropriate forum and to provide redress to obnoxious practices or the unscrupulous exploitation of consumers by companies, firms, trade association or individual; encourage the adoption of appropriate measures to ensure that products are safe for either intended or normally safe use.
CPC official that led the action, Emmanuel Ataguba, Director of Legal Services had stated that the action was in line with one of its mandates to provide redress for consumer abuse but according to another media practitioner who also prefers not to be named, the invasion of DStv and seizure of computers do not necessarily amount to consumer protection.
The media practitioner further stated that though investigation of any product or service provider is accepted in any market but the manner employed by CPC in the investigation of DStv on what it called ‘protection of consumer right’ leaves much to be desired. This is like those days of military raid on media houses.
How consumer complaints are handled in other lands
Consumer protection in some developing countries bother only on fake, adulteration, half fill of containers and price cheats which concentrate on FMCGs and telecom but unlike in Western world little is heard in health and other sectors.
However, in South Africa, any consumer may lodge a complaint with the complaints office. In terms of the Act, according to a source, a consumer is any natural person to whom any commodity is offered, supplied, or made available where the person does not intend to apply the commodity for purposes of resale, lease, and the provision of services or the manufacture of goods for gain.
“A complete complaint will be acknowledged in writing and investigated by an advisor. The respondent will be given an opportunity to respond to the complaint. If the complaint is unresolved, the advisor will refer it to the Consumer Protector. If the Consumer Protector finds reason to prosecute the matter, the complaint will be referred to the Consumer Affairs Court for adjudication. The Consumer Protector will represent the complainant in the Consumer Affairs Court”.
In UK, Consumer Protection issues are dealt with when complaints are made to the Director-General of Fair Trade. The Office of Fair Trading will then investigate, impose an injunction or take the matter to litigation. However, consumers cannot directly complain to the OFT. Complaints need to be made to Consumer Direct who will provide legal advice to complainants, or re-direct the individual complaint to Trading Standards for investigation.
In different markets, legal processes are followed in investigating and imposing sanctions on erring company as raid to force a company to comply to consumer rights is undemocratic and unorthordox.
Though CPC, as a regulator is entitled to industry statistics that could assist it to understand the market but such data could be harmoniously obtained especially when private sector is involved.
Other analysts who commented on the issue said it was therefore surprising that CPC, in a democratic setting, decided on the raid option of the media firm in a military fashion, an action which gives the room that CPC was after something else.
Nigeria as a big market is still attracting investors. It will therefore be discouraging if any government agency acts in such a way that suggests that the nation does not follow due process. CPC’s raid of DStv on the excuse that it was targeted at protecting consumers is unfortunate said the analysts. As its law permits, CPC can “cause an offending company, firm, trade, association or individual to protect, compensate, provide relief and safeguards to injured consumers or communities from adverse effects of technologies that are inherently harmful, injurious, violent or highly hazardous” not raid an organization in the name of consumer protection.