According to the Federal Competition and Consumer Protection Commission, PoS operators who are found guilty of price fixing face a three-month prison sentence.
This is because the FCCPC gave PoS operators a cease-and-desist order for behavior that violates the law.
The commission states that PoS operators who are found to be in violation of the order must pay N10m for corporate entities and N1m and/or serve up to three months in prison.
“The Commission advises PoS operators that violation of an order of the Commission attracts additional consequences apart from the underlying illegal conduct that is the subject of the order,” stated the FCCPC, Chief Executive Officer, Babatunde Irukera, on Monday. “These additional consequences include up to N10m for corporate entities; and N1m and/or a prison sentence of up to three months for individuals.”
The commission stated that, subject to Section 127 of the Federal Competition and Consumer Protection Act of 2018, which forbids prices that are manifestly unfair or exploitative, it did not seek to restrict the ability of PoS service providers to choose how to determine and set prices for services.
The commission asserts that it supports and respects pricing practices that are the result of market forces in a free, competitive, and undistorted market.
However, it made clear that it opposed price fixing that didn’t provide consumers an option. While they continue to give respect to and for small enterprises, the commission stated that upholding the law must not be optional.
As a result, the commission has issued an Order & Notice of the Commission to AMMBAN, persons identified as executives, members, and non-member PoS operators to cease conduct that violates the law to escalate this by the FCCPA and ancillary instruments.
“In addition, some people, like non-AMMBAN members, may become subject to the ONC,” it continued. As a result, the commission has done so before and is doing it once more. However, members are encouraged to evaluate whether the ONC’s service to their association or executives satisfies the requirements of Section 158(4) of the FCCPA.
The commission claims that after trying a cautious and cooperative approach, it has now decided to use the ONC to express its desire to execute the law.
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The commission said that it would not be reluctant to bring legal action against offenders and their affiliates who may otherwise be held legally accountable for the actions of a violating organization or enterprise.
“In addition to the stipulated statutory consequences,” the commission continued, “it will, (if deemed necessary) prohibit merchant services and privileges to PoS operators or AMMBAN members who persist in behavior that is inconsistent with the law and economic efficiency, although it prefers not to disrupt the business and operations of small enterprises.”
The Association of Mobile Money and Bank Agents in Nigeria’s National President, Victor Olojo, commented on this development and noted that the association had not set a pricing.
He claims that the group just published a price list to stop agents from exploiting Nigerians. He mentioned that AMMBAN had received the FCCPC’s letter and had replied appropriately.
We are not ignoring the fact that pricing cannot stay the same, he continued. The cost of fuel and transportation are not comparable. Nothing is the same anymore. Therefore, the FCCPC cannot compel a business to make a loss on a sale. They may be wondering if we are setting prices, but AMMBAN does not do so. Instead, we advise our members to keep their prices competitive by not going over a specific threshold. The association, he continued, was dedicated to and willing to cooperate with the Federal Government and its institutions.
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