CPA refers “Gulf Company” and “Al Futtaim Egypt Company” to prosecution for a misleading advertisement

CPA Chairman: although both companies are not licensed, they advertise for timeshare residential units in Mona Lisa Touristic Village, Matrouh, and Al Hayah Resort, Ras Sedr.

Yacoub: we call upon consumers to verify the data of such companies with the competent authorities before purchasing any product.

Within the framework of CPA strive to protect consumers’ interests- by virtue of Consumer Protection Law No. 67 of 2006- and CPA assigned role to enforce the law as well as entrench rules and standards required to protect consumers, monitor market and combat misleading advertisements, CPA referred “Gulf Company” and “Al Futtaim Egypt Company” to  prosecutor. Both companies, despite being unlicensed, were advertising for timeshare units and using wordings misleading consumers.  

CPA Chairman, Atef Yacoub, referred to the numerous complaints received from parties contracting with “Al Futtaim Egypt” on timeshare basis in Mona Lisa Touristic Village, Matrouh. The complaints stated that the resort residential units do not have facilities. As CPA   addressed Hotels and Touristic Villages Sector, at the Ministry of Tourism, we were informed that the contract of this company do not include timeshare system, as the company did not obtain the required licenses to practice such an activity.  

With reference to “Gulf Company”, Yacoub stated that the company did not deliver the residential units to the persons who booked on the specified dates. Hotels and Touristic Villages Sector stated that the contract was not subject to the Ministry of Tourism supervision, as the company did not receive the needed licenses to exercise such an activity.

It is worth noting in this regard that Article 6 of Consumer Protection Law No. 67 of 2006 states that “every supplier and advertiser shall provide the consumer with correct information concerning the nature and the characteristics of the product and avoid anything that would create an incorrect or misleading impression to the consumer or lead to the consumer falling into confusion or mistakes.”

As CPA verified that the companies have slackened in delivering the contracted units and lacked required licenses from competent authorities to practice the said activity, CPA Board decided to oblige the legal representative of each company to refund the amounts of contracts, the contracts at issue. However, as they did not respond to the decision; CPA applied the provisions of law and referred both companies to the public prosecutor.

Yacoub requested all consumers to necessarily check the reality of all the data included in advertisements of goods and services prior to purchasing. He further called upon consumers to refer to competent authorities for verification of data and to submit complaints to CPA regarding any goods or services non-conforming to specifications or violating consumers’ interests and rights. Complaints can be submitted by using the hotline number 19588, resorting to post offices found across the Republic that have CPA complaint form to be filled and sent free of charges, seeking consumer protection associations located in governorates or through CPA website www.cpa.gove.eg

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