FCCPC Cautions Pos Providers Against Fixing Prices.
The Federal Competition and Consumer Protection Commission (FCCPC) has warned Nigerian point of sale (PoS) companies against fixing prices or forming cartels, particularly in Lagos.
Furthermore, The FCCPC protested the arbitrary rise in fees, pointing out that the legislation disapproves
of attempts by the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) to
set fees.
in addition, In a statement issued Wednesday, the Commission stated that it will continue to use an
advocacy strategy while remaining willing to apply sanctions when required.
According to Babatunde Irukera, Executive Vice Chairman and Chief Executive Officer, the
Commission will not permit any attempt to establish a PoS business cartel that sets prices.
Irukera said the Commission was concerned about statements coming from the
association's executives and scowled at AMMBAN's contempt for its prior warning.
Also, The FCCPC CEO disputed various assertions made by AMMBAN leadership and reaffirmed
that the Commission "is not weak," highlighting the fact that the organization employed
advocacy to compel legal compliance because the PoS industry is led by young Nigerians
who generate their own jobs.
“Considering that membership of AMMBAN probably consists mainly of small businesses
and creates employment for young and mostly vulnerable citizens, the Commission adopted
advocacy and business education as the tool to promote and enforce obedience to the law."
“This is a prudential, not weak or helpless approach to ensuring compliance, and it
underscores the Commission’s proportionality approach to its consequence management
system and interpretation of the law,” he stated.
He claims that, subject to Section 127 of the Federal Competition and Consumer Protection
Act of 2018 (FCCPA), which forbids prices that are obviously unfair or exploitative, the
Commission has not sought to restrict the right of PoS service providers to choose how to
determine and set prices for their services.
The head of the FCCPC continued by saying that the FCCPA gives the Commission
statutory authorities to guarantee compliance and punish legal infractions. As was already
said, some of these fines are severe.
However, The enforcement of the law must continue to be non-negotiable, he continued, even as the
Commission continues to provide regard to and for small enterprises.
alTHOUGH, He warned PoS operators that violating a Commission order could result in fines of up to
N10 million for corporate entities and up to N1 million and/or a three-month jail sentence for
individuals, in addition to the underlying illegal conduct that is the subject of the order.
“In addition to stipulated statutory consequences, although the Commission prefers not to
disrupt the business and operators of small enterprises, it will, (if it becomes necessary)
prohibit merchant services and privileges to PoS operators or AMMBAN members, who
persist in conduct that is inconsistent with law and economic efficiency,” Irukera concluded.
