A nonprofit group in Saitama Prefecture filed a cease and desist lawsuit against online travel agency Agoda on Wednesday, saying the firm’s terms of service that limit it from being liable for compensation violate consumer protection laws.
In filing the lawsuit to the Saitama District Court, the Saitama Organization To Get Rid of Consumer Damage claimed that Agoda's terms of service include unfair clauses violating Consumer Contract Law. These clauses absolve the Singapore-based travel agency of legal obligations, particularly regarding damages claims for its hotel reservation website. The consumer advocacy group contends that the lack of clarity about the company’s liability hurts users' interests.
The group pointed out that even if the firm were to assume responsibility, it would only be liable for up to $250. If the travel service cost less than that, the company would only pay that amount due to its clauses.