[/floatr]Asahi: Nova's refund system illegal
The Supreme Court on Tuesday rejected an appeal filed by Nova Corp., saying the refund system of the nation's largest English conversation school is invalid and violates the special commercial transaction law. The decision finalized the rulings of two lower courts that ordered Nova to refund about 310,000 yen to a former student, the full amount he was seeking. "Nova's refund rules restrict students from executing their right to cancel their contracts," said Presiding Justice Kohei Nasu of the top court's Third Petty Bench. The Supreme Court effectively ruled that it is illegal, under any circumstance, for businesses to claim refunds that exceed the fees initially paid at the time of the contract. The ruling is expected to serve as a warning to a growing number of businesses that set fees on a per-service basis, including language schools, esthetic salons, cram schools and companies that dispatch private tutors...Nova has defended the legitimacy of its refund rules, saying they were the products of consultations with the Ministry of Economy, Trade and Industry. The company has also said Japan Railway companies adopt a similar method with their commuter passes...more...
According to this report, NOVA added "The firm warned that the ruling will 'have no small effect on fees of the entire industry' as its 'efforts to keep them low as an industry price leader' have been refused".
