Following a mutual understanding and commitment from Sahad store, a Fast-Moving Consumer Goods (FMCG) Store in Abuja to implement transparent pricing practices, the Federal Competition and Consumer Protection Commission (FCCPC)has reopened the store.
The action was contained in a statement by Dr. Adamu Abdullahi, Ag. Executive Vice Chairman/Chief Executive Officer of the commission who disclosed that the Commission was aware that similar practices may be occurring at other FCMG outlets nationwide. He advised the outlets to cease such practices immediately to avoid consequences.
How it started
January 8, 2024, the FCCPC investigated all branches of Sahad stores in the FCT following reports of misleading pricing practices. It found that the store displayed lower prices on shelves and charged higher prices at checkout, contravening Section 115 of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
The FCCPC then issued a summons to specific staff of the store, asking them to appear on February 12, 2024, to discuss corrective measures; the staff failed to appear without justification and this raised concerns about potential violations under Section 33(3) of the FCCPA.
The (FCCPC) then conducted an on-the-spot check on February 16, 2024, leading to the temporary closure of the store due to continued violations involving misleading pricing and lack of transparency. They confirmed through random checks that the deceptive practice did not only continue, but cashiers also charged prices at their discretion, leaving unsuspecting customers vulnerable to unfair pricing. Exercising its authority under Section 18(f), the Commission temporarily sealed the premises to allow the store time to readjust their pricing system.
Conclusion
Businesses in Nigeria are expected to display transparent pricing information to empower consumers to make informed purchasing decisions, this is more important during challenging economic times like this.
The FCCPC say it remains committed to combating all forms of exploitative or misleading practices that undermine consumer rights. The FCCPA protects consumer rights and prohibits deceptive business practices. Section 115 outlines potential penalties for violations, including fines for organisations and imprisonment for directors. The Commission therefore encourages all businesses to adhere to fair and transparent pricing practices to ensure consumer protection and a healthy market environment.
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