Point of Sale (PoS) operators in Nigeria are facing strict penalties as the Federal Competition and Consumer Protection Commission (FCCPC) issues a warning against price fixing.
The Executive Vice Chairman and Chief Executive Officer of FCCPC, Babatunde Irukera, stated that PoS operators risk a fine ranging from N1 million to N10 million, as well as three months imprisonment if they collectively increase the price of their transactions.
The warning comes in response to the decision made by the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) to fix new prices on July 17, 2023, which the FCCPC perceives as a violation of Section 127 of the Federal Competition and Consumer Protection Act 2018.
Irukera emphasized that the FCCPC will not hesitate to enforce the law against PoS operators found guilty of setting prices that are not determined by market forces.
Violation of an order issued by the Commission carries additional consequences on top of the underlying illegal conduct, with corporate entities facing fines of up to N10,000,000, and individuals facing fines of up to N1,000,000 and/or imprisonment for up to three months.
In response to the collective price increase, FCCPC issued a cease and desist order to members of AMMBAN. The Commission has entered an Order & Notice (ONC) of the Commission to AMMBAN, executives, members, and non-member PoS operators, demanding them to stop conduct that infringes on the law.
The FCCPC’s warning also extends to PoS operators who are not part of AMMBAN. The cease and desist order applies to them as well, and the Commission is making the ONC publicly available to ensure its enforcement.
While FCCPC acknowledged its preference for not disrupting the business operations of small enterprises, the agency asserted that it will take decisive action if necessary.
This could include prohibiting merchant services and privileges to PoS operators or AMMBAN members who persist in engaging in conduct inconsistent with the law and economic efficiency.
The FCCPC’s measures aim to ensure a fair and competitive market environment, preventing anti-competitive practices that could harm consumers and businesses.
The Commission remains committed to enforcing regulations that safeguard the rights and interests of all stakeholders in the Nigerian market
