FCCPC sets one-month deadline for retailers to end ‘exploitative pricing’

The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month ultimatum to businesses engaged in exploitative pricing practices, warning that non-compliance will result in stringent enforcement measures.

The warning came Thursday at a one-day stakeholders’ engagement on exploitative pricing where the FCCPC’s Executive Vice Chairman and Chief Executive Officer, Olatunji Bello, highlighted concerns over widespread price gouging and fixing.

In his address, Mr Bello disclosed the findings of recent market surveys conducted by the commission, which revealed rampant profiteering across various sectors, notably in retail.

The FCCPC said it has granted businesses until the end of September to align their pricing with fair market practices or face severe penalties, including fines and potential imprisonment under the Federal Competition and Consumer Protection Act (FCCPA).

“Our investigations have uncovered disturbing levels of overpricing, particularly in the retail sector.”

“For example, we observed that a product retailing for $89 in the United States was marked up to N944,999 in a Lagos store—an increase of more than 500 per cent. Such practices are not only unethical but also illegal under the FCCPA,” he said.

While the commission has opted for an initial approach focused on dialogue and collaboration, Mr Bello noted that the moratorium is the final warning before enforcement begins.

Under the FCCPA, the FCCPC is empowered to impose significant fines on offending businesses, with additional provisions for the imprisonment of individuals responsible for such practices.

“We are providing a one-month grace period, commencing in September, for businesses to adjust their pricing strategies.

“Failure to comply will result in the full enforcement of the law. The FCCPC stands ready to take decisive action against those who continue to exploit consumers for excessive profit,” he said.

Mr Bello urged businesses to act swiftly, noting that the time for unchecked price hikes and anti-consumer practices is coming to an end.

The stakeholders meeting was attended by representatives of various associations providing goods and services in Nigeria.

The Chairperson of the National Association of Nigerian Traders, FCT Chapter, Ifeanyi Okonkwo, expressed concerns about the government’s role in the rising costs of goods and services.

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He accused the government of contributing to price increases and argued that regulation should begin at the point of entry, as security operatives and changes in landing costs are factors driving price hikes.

Mr Okonkwo highlighted corruption as a major obstacle to effective regulation, pointing out that despite the federal government providing free fertilisers, the supervising agencies sell them to farmers, which drives up costs.