The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month notice to traders and other market stakeholders to address exploitative pricing of goods.
This directive was announced by the newly appointed Executive Vice Chairman of the FCCPC, Tunji Bello, during a one-day stakeholders’ engagement on exploitative pricing held in Abuja on Thursday.
According to Bello, the FCCPC will initiate enforcement actions against violators after the moratorium period concludes. The purpose of the meeting was to address the growing trend of unreasonable pricing and the unwholesome practices of market associations, including price fixing.
Bello highlighted a striking example of price disparity: a fruit blender known as Ninja, priced at $89 (N140,000) in Texas, was found to be sold at N944,999 in Victoria Island, Lagos. He questioned the rationale behind such an arbitrary price hike compared to the U.S. market, emphasizing that these practices are undermining the stability of the economy.
“Under Section 155, violators whether individuals or corporate entities face severe penalties including substantial fines and imprisonment if found guilty by the court,” Bello stated.
“This is intended to deter all parties involved in such illicit activities. However, our approach today is not punitive. I, therefore, call on all stakeholders to embrace the spirit of patriotism and cooperation.” The one-month notice is intended to give traders time to adjust before the FCCPC begins strict enforcement in October.
Bello acknowledged that market stakeholders raised legitimate concerns, including high transportation costs, insecurity, and multiple taxation, which contribute to rising prices. However, he emphasized that price gouging and price fixing are illegal and unethical under the FCCPA.
The National Bureau of Statistics (NBS) recently reported an inflation rate of 33.40%, with food inflation surpassing 40%, exacerbated by the end of fuel subsidies as announced by President Bola Tinubu on May 29, 2023.
“The issue of critical national importance of the day is the growing trend of unreasonable pricing of consumer goods and services across the country, and the unwholesome practice of market associations engaged in price fixing,” Bello remarked.
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“As a responsive organization, we have carried out discreet market surveys extensively across the country in the past few weeks. Our findings are quite disturbing, to put it mildly.
Therefore, our gathering here today underscores the gravity of the situation and the urgency to work together to check this unwholesome development.”
Bello reaffirmed the FCCPC’s commitment to invoking the full extent of the law against traders found guilty of exploiting consumers, while also emphasizing that dialogue and collaboration are crucial for fostering a fair marketplace.
“Price gouging and price fixing are not only unethical but patently illegal under the FCCPA,” he said.
“The FCCPC has the will and the capacity to invoke the full weight of the law against those found culpable of exploiting consumers. However, our approach today is not punitive or adversarial… dialogue and collaboration are equally important tools in fostering a fair marketplace.”
