The Federal Government has issued a cease-and-desist order to Point of Sale operators for violating the law through the Federal Competition and Consumer Protection Commission.
This follows the decision by Point-of-Sale (PoS) operators in Nigeria to set new rates for PoS transactions under the auspices of the Association of Mobile Money and Bank Agents in Nigeria.
The new pricing plan will go into effect on July 17, 2023.
According to the commission, PoS operators who violate the order would be fined N10 million for corporate organisations and N1 million and/or sentenced to up to three months in prison for individuals.
The FCCPC stated on Monday in a statement issued by its Executive Vice Chairman/CEO, Babatunde Irukera, that “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 such as up to N10,000,000 for corporate entities; and N1,000,000 and or a prison sentence of up to three months for individuals.”
The commission emphasised that subject to Section 127 of the Federal Competition and Consumer Protection Act of 2018, which forbids prices that are obviously exploitative or unfair, it has not sought to restrict the right of PoS service providers to choose how to determine and set prices for their services.
According to the statement, it recognises and supports pricing practices that are the result of market forces in a free, competitive, and undistorted market. On the other hand, it said there was no proof that the PoS market in Lagos or any place else lacked enough competitors or participants.
The commission stated:
“While the Commission continues to provide consideration to, and for small businesses, enforcing the law must remain non-negotiable.
“Accordingly, the Commission, in escalating this in accordance with the FCCPA and ancillary instruments, has entered an Order & Notice (ONC) of the Commission to AMMBAN, persons identified as executives, members, and non-member PoS operators to Cease and Desist from conduct that constitutes an infringement of the law.”
It stated that AMMBAN has received service from the ONC. AMMBAN service does not guarantee that every member will receive personal service or knowledge.
“In addition, some persons, such as non-AMMBAN members, may become subject to the ONC. Accordingly, the Commission has, and is by this again publicly disseminating the ONC. Members are however invited to consider sufficiency of service of the ONC under Section 158(4) of the FCCPA which deems such service on their association or executives as adequate and acceptable.”
The commission claims that after experimenting with a cautious and cooperative approach, it has now adopted the ONC to express its intent to enforce the law, including and up to prosecuting offenders and affiliates who may otherwise be statutorily accountable for the actions of a violating firm or business.
It also stated, “In addition to stipulated statutory consequences, although the Commission prefers not to disrupt the business and operations of small enterprises, it will (if it becomes necessary) prohibit merchant services and privileges to PoS operators or AMMBAN members who persist in conduct that is inconsistent with law and economic efficiency.”
cc: Punch Ng
