Court Ordered Peace Mass Transit to pay N500,000 for illegal policy of no refund

Transport company, Peace Mass Transit, has been ordered by a court to pay N500,000 in damages to a passenger, Patrick C. Chukwuma, for refusing to refund his money for a trip not taken. The Federal Competition and Consumer Protection Act, 2018, mandates service providers to refund fares for services not provided.

The incident occurred on February 10, 2021, when Chukwuma purchased a ticket from the Obollor-Afor branch of Peace Mass Transit to Enugu. After a two-hour delay due to a lack of passengers, Chukwuma returned to the ticketing office and asked for a refund of the N500 he had paid. Staff of the defendant refused, citing the company policy that money paid for transport fare cannot be returned to passengers, despite Chukwuma’s explanation that such a policy was illegal.

The plaintiff’s lawyer wrote a letter to the Peace Mass Group of companies, demanding an apology and refund, but it was ignored. The law firm subsequently instituted the action.

Hon. Justice C.O. Ajah, delivering the judgment, declared the company’s policy illegal and null and void in light of the relevant provisions of the Federal Competition and Consumer Protection Act, 2018. The court also ordered the defendant to pay N500,000 in damages to the plaintiff.

Many Nigerians have hailed the judgment, describing it as a sign of an end to impunity among service providers.