The Consumer Council is closely watching the developments on KPS and reaffirms that legal action is being pursued against the company to protect the rights of coupon holders.
The Council as the trustee of the Consumer Legal Action Fund has appointed lawyers for the impending litigation which is expected to take the form of a representative action in High Court on behalf of the large number (800) of applicants who have sought legal assistance under CLAF.
First and foremost, the Council reiterates its position to uphold the rights of consumers and deplores any unilateral variation of rights of prepaid coupon holders by the operators.
In the case of KPS, its "Coupon Burn Campaign" is tantamount to unilaterally reducing the benefits of the consumers. In the Council's view, KPS has breached its contractual obligations to its customers.
Second, throughout the process of reconciliation between KPS and coupon holders, the Council has explained to the complainants their rights and the pros and cons, the risks and benefits, of the various options open to them.
The Council could mediate on their behalf. In this respect, the Council's effort has resulted in KPS relaxing its restrictions over the validity of coupons and expanding its offer to holders with coupons outstanding. Many have since opted to take advantage of the expanded package by KPS.
Alternatively, the Council could offer assistance to complainants seeking legal redress. Complainants could choose either to pursue their individual claims through the Small Claims Tribunal or to pursue collectively in a group action through the High Court.
To avail every opportunity for the coupon holders to determine the course of action which would best serve their own interest, the Council has decided to commence legal action pending the expiration of the KPS offer. Applications for CLAF legal assistance are open to all those with coupons still outstanding and applications received are being duly processed in the meantime.
Third, to facilitate consumers' decision over the option to adopt, the Council has urged KPS to provide financial information so as to enable them to come to a fair and reasonable view of the standing of the company. This the Council regards as crucial as KPS in calling for consumer support for its business must establish itself as a credible and fair partner.
Lastly, the Council has explored every means possible and devoted much effort to bring about a degree of protection for consumers in prepayment transactions.
It has issued a voluntary Code of Practice to business accepting consumer prepayments which, if adopted, will reduce the chances of consumers suffering loss.
The Council is also pleased to note that the Trade and Industry Bureau has requested the Secretary for Justice to consider the feasibility of legislative protection for consumer prepayment.