It goes without saying that Nigeria has a very serious problem regarding Consumer Rights and Business competition, with many end-users, customers and consumers either resigning to their fates when faced with abysmal product/service quality and delivery or resorting to measures like call-outs and public shaming of brands on Social Media.
Whether It is from very dubious Online loan providers to shoddy Fast food services to sub-par Banking services and Telecommunications services, constant consumer rights violations continue to occur, with most consumers not even being aware that a legal framework on Consumer Rights Protection actually exists in Nigeria.
Regarding business competition, we have witnessed cases of Consumers being at the mercy of companies in certain sectors that come together to form monopolies that constitute the height of unfair business practices.
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These 2 situations mentioned above will be forming the focus of this article which will be treating the topics of :-
– The definition of Consumer Protection.
– The rights of consumers in Nigeria.
– The Legal and Regulatory Framework governing Consumer Protection and Competition in Nigeria.
– The remedial options available to aggrieved consumers.
– The dispute resolution options available to aggrieved consumers.
What is Consumer Protection?
Consumer Protection is the practice of safeguarding/securing the rights and interests of end-users/buyers of goods and services as well the public interest against unfair business/market practices.
What is the Legal Framework governing Consumer Protection and Competition in Nigeria?
Consumer Protection and Competition is regulated mainly by the Federal Competition and Consumer Protection Commission FCCPC through the Federal Competition and Consumer Protection Act(‘The Act’) 2018.
What are the objectives of Consumer Protection in Nigeria?
Consumer Protection in Nigeria is aimed at :-
– Ensuring the safeguarding of Consumer Rights.
– Creating Guidelines providing for proper sensitization of consumers to enable the making of better-informed purchasing decisions.
– Ensuring compliance of goods and services providers with laid down quality and safety minimum requirements.
– The normalization of fair Business practices and competition.
– The creation of an efficient justice delivery/remedial system for consumers whose rights have been violated.
What is the applicability limit of the Federal Competition and Consumer Protection Act?
The Act is applicable to :-
– all commercial/profit-taking activities geared toward the satisfaction of Consumer demand within or having effect in Nigeria, whether they involve government agencies, departments or corporations ;
– to disallowed business conduct by Nigerians or resident foreigners in Nigeria, be they individuals or corporate entities;
– anybody regarding the acquisition of assets/stocks outside Nigeria which will lead to a change of the business directly/indirectly in Nigeria.
– overriding power in the event of conflict with the provisions of any other law regarding Competition and Consumer Protection except when in conflict with the Constitution of the Federal Republic of Nigeria.
What are the rights of a consumer?
The rights of a consumer in Nigeria are :-
– The right to fair dealings.
– The right to safe and quality goods and services.
– The right to select suppliers/vendors.
– The right to cancel advance bookings.
– The right to return goods.
– The right to Customer/End-user Data Privacy.
– The right to inspect goods to be purchased.
What is the operating structure of the Federal Competition and Consumer Protection Commission?
The FCCPC basically handles Consumer Protection matters pursuant to its statutory duty of enforcing the provisions of the Federal Competition and Consumer Protection Act.
The FCCPC handles Consumer Rights petitions and makes decisions which can be appealed by going to the Competition and Consumer Protection Tribunal (CCPT) .
Decisions of the CCPT are binding and must be registered with the Federal High Court for the purpose of enforcement.
The powers of the CCPT also override the decision making powers of any other Regulatory agency in any other sector regarding Consumer Protection and Competition.
Please note that appeals of the CCPT are to be commenced at the Court of Appeal of Nigeria within 30days of the CCPT passing its order/judgment.
Who is legally qualified to file/make a petition to the FCCPC?
– Individuals(aggrieved consumers)
– Individuals (on the basis of public interest).
– Accredited Consumer Protection Groups.
– The FCCPC on its own decision.
What actions can the FCCPC take in the course of enforcing the FCCPA?
The FCCPC can:-
– Close off any production center used for the manufacturing of substandard, fake, hazardous or illegal goods.
– Issue Public notices of harmful goods in circulation.
– Work with other sector regulators to penalize businesses found to be in violation of consumer rights via punitive fines, sanctions and Business license suspensions.
How does the FCCPC work to prevent unfair business competition?
The FCCPC does this by carrying out pre-approval screenings of all company merger applications to be sure that:-
– it will not reduce competition via monopoly creation;
– the merger will result in technology efficiency and enhancement;
– the merger will not run contrary to public interest.
Conclusion :- It is hoped that a clearer understanding of the Legal Framework governing Competition and Consumer Protection has been achieved from the above write-up to enable business people and consumers know how to make better informed decisions concerning commencing company mergers and seeking legal remedies for the violation of their Consumer Rights respectively going forward.