Fine-tune Consumer Protection Act 1999
SMALL claims courts have been set up in many countries around the world to avoid lengthy and expensive litigations. In Malaysia, this body is the Tribunal Tuntutan Pengguna Malaysia (TTPM), and consumers need to pay only RM5 to file a claim.
In 2019, the maximum amount claimable at TTPM was raised from RM25,000 to RM50,000. Disputing parties must appear in person at the tribunal and cannot be represented by a lawyer. As TTPM was set up to protect consumers, judgment is likely to be awarded in favour of the claimant if it is a 50:50 case.
When claims are made against large businesses, consumers would have to argue their case against formidable opponents, but the tables are turned when dissatisfied customers file claims against tour or travel agencies, as most of these firms are small- and mediumsized enterprises.
Many are micro businesses employing only a handful of staff with minimal legal expertise.
Usually, there are no written agreements between a host of contracted service providers with their customers on a tour. Sadly, travel agents suffer a double whammy whenever something goes wrong, and there are many risks.
The only training many travel agents receive is the Travel and Tours Enhancement Course (TTEC) to obtain the certificate needed to renew their tour operating and travel agency business licences with the Tourism, Arts and Culture Ministry (MOTAC).
One of the five units in TTEC is “Tourism law and best practices”, and one of the presentation slides is dedicated to the Consumer Protection Act 1999. This would serve them well in the event of a showdown at TTPM.
But more importantly, they learn the importance of avoiding a hearing at the tribunal by seeking a compromise with customers, even when they believe they are absolutely right.
This is because winning a case at TTPM, or in a civil court, would be a pyrrhic victory. It would have saved them more time and money to reach a compromise with customers. The same efforts used for a successful defence could be better spent on more productive pursuits.
While conducting training, I would ask “Is the customer always right?”
Some would say yes, some no, while the silent majority were unsure. I would then point out that since no one can be perfect, then no customer can always be right. But if a particular customer is valued, he should be treated as if he is right even when he is in the wrong.
Always treating customers with respect and ensuring they do not lose face in any unpleasant incident will pay dividends in the long run.
TTEC is meant to train travel agents to comply with various laws, safeguard their interests with binding contracts, adopt the best practices in the travel industry; ensure the safety and security of tourists and practise responsible tourism, plus briefings by MOTAC and Tourism Malaysia.
However, there is one sticking point in the Consumer Protection Act 1999 which ought to be amended, and that is allowing up to three years for claims to be lodged. Granted, three weeks after a tour may be too short a time to file a complaint, but three months is more than enough.
Three years may be applicable in one or two odd cases among all goods and services, but it should not be applied across the board and ought to be amended to three months. For tour companies, it is unfair that they must keep customers happy for three years after a tour.