I have had people complain about sellers not refunding after a reasonable complaint or issue with the product. It's a common frustration, but is it even legal?"

A young woman was arguing with a salesperson last Friday while I was shopping. She wanted to return or exchange a skincare item that she had bought but noticed it was already opened when she got home. Because the store had a strict "no-return" policy, she probably wasn’t able to return it. While this lady was really upset, this isn't an uncommon issue in Nigeria and certainly might not be the first time you've also seen such a dispute.

The truth remains that this situation highlights a larger issue with consumer rights in our country. As citizens or salespeople, most often we don't really understand or beware of our rights, and this rubs off our ability to fight for our rights fully protected by law.

Also, it is disheartening to observe that not only small businesses but also large firms engage in these unlawful practices. I once came across a worth-noting case involving Peace Mass Transit, which was sued because of its "no refund policy." In this particular case, a customer's request for a refund was turned down due to the company's strict policy following a service failure where they were unable to leave on time, a common practice in Nigeria's transport industry.

After a lawsuit was filed, the Enugu State High Court rejected Peace Mass Transit's argument. Citing the Federal Competition and Consumer Protection Act of 2018, which was passed in 2019 and protects customers' rights to cancel reservations in advance and get refunds, the court ruled that the no-refund policy was unconstitutional. A N500,000 damages award was given to the customer.

This ruling sends a strong message that policies that violate consumer protection laws will not be accepted and that consumers' rights must be upheld. In Nigeria, consumer rights are protected by the Federal Competition and Consumer Protection Act (FCCPA), which was enacted in 2019. This important law is designed to protect consumers against unfair business practices, including the 'no return, no refund' policies often imposed by retailers.

When you go through the Federal Competition and Consumer Commission page, you will see testimonies like those below.

Specifically, Section 125 of the FCCPA states that sellers can't enforce terms that unfairly restrict consumers' rights to return defective or unsafe goods. Fighting unjust 'no return, no refund' policies, this law makes sure that customers can return defective goods. The law clearly states, "A supplier shall not...make an agreement subject to terms that are unfair, unreasonable, or unjust" (FCCPA, 2019).

Additionally, Section 129 strengthens consumer protection by allowing consumers to reject goods that are unsatisfactory in quality, unfit for their intended purpose, or not as described, within a reasonable period. This right is crucial because it ensures that consumers aren't stuck with defective or unsuitable products. According to the law, "A consumer has a right to reject goods and obtain a full refund if those goods fail to satisfy the standards set out in this section" (FCCPA, 2019).

Comparing Nigeria's consumer protection system to that of South Africa and Kenya, we find comparable robust regulations. A cooling-off period included into South Africa's Consumer Protection Act enables customers to return items for any reason within five business days of making a direct marketing transaction. Like Nigeria's laws, Kenya's Consumer Protection Act safeguards against deceptive activities and guarantees justice.

Developed countries are in quite different situations. Businesses in the United States, for example, set their own return policies, and no government rules require refunds unless the items are defective.

However, consumer protection standards in the European Union are rather strong; all items are protected by a minimum two-year warranty, and online transactions include a 14-day cooling-off period during which buyers can return anything for any reason.

Though Nigeria has a strong legal system, there may be inconsistencies in how the laws are actually executed.

Lack of knowledge about their rights and restricted access to legal remedy provide difficulties for many consumers. Even while Nigerian legislation protects consumer rights in a manner that is rather similar to that of other African and industrialised countries, there is still need for significant improvement in their practical application. Thus, the progress of consumer protection in Nigeria depends on keeping up the awareness-raising of consumer rights and fortifying enforcement measures.