Nigeria consumer body threatens PoS operators with jail time over pricing

Nigeria’s consumer protection agency has threatened point-of-sale operators with jail terms and fines for price-fixing, after money and bank agents refused to back off from a new price template.

The Federal Competition and Consumer Protection Commission said PoS operators were continuing with “coordinated or concerted efforts (otherwise known as price-fixing or cartel)”. It said individuals who violate its earlier order face fines of up to N1 million or three months in jail. Companies face N10 million.

The Lagos chapter of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) had on July 1 announced a new price list for PoS transactions in the state, with the withdrawal of N10,000 drawing as much as N1000 fee.

The group said the measure was aimed at deterring fraud and overcharging by agents.

The consumer agency asked agent bankers to abandon their plans, stating that price-fixing is illegal, distorts the market, prevents innovation and efficiency, and negatively impacts consumers. The agency also said it was investigating the group and its business practices.

– Adamancy

In a new statement on Monday, the agency accused the operators of “adamancy” and “insistence on membership-wide implementation of price-fixing.”

Babatunde Irukera, the executive vice chairman, said the FCCPC had entered an Order and Notice (ONC) to the group’s executives, members and non-member PoS operators.

“The Commission issued an advisory informing and discouraging the association and Point of Sale (PoS) operators from engaging in coordinated or concerted efforts (otherwise known as price-fixing or cartel),” he said.

“The advisory is also to stop the association from acting in furtherance of any such coordinated or concerted efforts to uniformly determine, announce or implement changes in price of services they render.

“The ONC was issued by the Commission and served on AMMBAN. The Commission has, and is by this again publicly disseminating the ONC.

“The ONC, however, conveys the Commission’s will to enforce the law including, and up to prosecuting violators and affiliates who may otherwise be statutorily liable for the conduct.

“The impunity associated with persisting in a course of action prohibited by law, and clearly forbidden by regulators usually constitutes aggravating factors in determining penalties for illegal conduct,’’ he said.