Consumer Protection Regulation In Nigeria: The Role Of The Federal Competition And Consumer Protection Commission

Introduction

Consumer Protection has long been a significant concern worldwide, with increased focus on ensuring that suppliers of goods and services embrace fair practices to safeguard consumer rights. To create a transparent, competitive and consumer-friendly market environment in Nigeria, the Federal Competition and Consumer Protection Act (the “Act”), which was passed into law in 2018, established the Federal Competition and Consumer Protection Commission (FCCPC).

In this newsletter, we explore some key functions of the FCCPC and how they contribute to achieving these objectives.

1. Regulating Competition and Promoting Fair Trade Practices:  The FCCPC oversees and regulates market competition to prevent businesses from creating monopolies and anti-competitive practices. This responsibility includes reviewing and approving mergers and acquisitions which meet a specified threshold to ensure they do not adversely impact market competition or undermine consumer welfare. In addition, the FCCPC advances fair trade practices by educating businesses and consumers about their respective rights and obligations. This includes creating awareness about ethical market practices, encouraging firms to engage in responsible and transparent conduct, and providing clear guidance on consumer rights.
2. Monitoring and Investigating Market Practices:  The FCCPC actively monitors market practices to detect and investigate anti-competitive behaviour, unfair practices and consumer fraud. This involves conducting market studies, collecting consumer data and taking disciplinary action based on findings.
3. Protecting Consumer Rights:  The FCCPC plays a significant role in safeguarding consumers' rights and interests. This involves addressing consumer complaints, investigating grievances, and ensuring that businesses adhere to fair and ethical practices. The FCCPC is empowered by the Act to take legal action against companies that infringe on consumer rights or engage in fraudulent activities. For instance, the FCCPC has recently investigated and issued multi-million dollar fines against companies such as British-American Tobacco, Meta and Coca-Cola on allegations of breach of consumer protection regulations in Nigeria.
4. Enforcing Compliance:  The FCCPC also enforces compliance with consumer protection laws and other regulations which impact consumer rights. It conducts thorough monitoring of market practices to ensure compliance, intervening where necessary to address violations. For instance, the FCCPC regulates digital money lenders and requires that they obtain approvals from FCCPC before their applications can be listed on digital platforms. In addition, the FCCPC collaborates with other regulators whose functions impact consumer protection.
5. Policy Advocacy and Reform: Finally, the FCCPC advocates for policy changes and reforms to improve consumer protection and competition laws. It collaborates with other government agencies, stakeholders and international organizations to refine and strengthen the legal and regulatory framework for consumers. protection. By doing this, the FCCPC aims to ensure that policies remain effective, relevant, and responsive to the evolving market landscape.

Conclusion

The recognition of Consumer Protection rights in Nigeria, whilst not novel, has gained significant traction under the recently established FCPPC. Therefore, businesses are encouraged to proactively develop and implement robust consumer protection policies in their operations. This will help to prevent violations and ensure compliance with regulatory standards, thereby avoiding potential penalties and ultimately contributing to a fair and transparent marketplace.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.