The Consumer Council, as trustee of Consumer Legal Action Fund (CLAF), is considering instigating legal action against KPS over its decision to limit the validity of its coupons.
The Council is now seekign legal advice on the course of action that will be most effective in helping coupon holders affected.
Both the management committee and board of administrators of CLAF have deliberated the issue and consented to seeking legal advice with the assistance of the fund.
The Council has received some 1,800 consumer complaints against the company. In the resolution of these complaints, the Council has attempted reconciliation as is the Councils's normal practice in trying to bring settlement.
But the outcome of this effort has not been entirely satisfactory. So far KPS would only agree to resolve complaints of membership which expired by allowing it to be renewed for a short term at a reduced fee. KPS has also undertaken to increase its stock supply and choice of video.
In additoon, the Council is assisting, and will continue to assist, coupon holders who opt to pursue their individual cases through the Small Claims Tribunal for Monetary Redress.
Notwithstanding the impending consideration by CLAF, consumers should weigh the options open to them. The pros and cons of legal action vis-a-vis accepting the offer KPS is making.
The Consumer Council will announce further details with regard to the course of legal action CLAF is consideriing to take in the interest of coupon holders.