The Federal Comp etition & Consumer Protection Commission has issued a warning to PoS operators to desist from conducts that constitute an infringement of the law whole threatening a ban of errant operators.
This warning follows an earlier advisory issued by the Commission on Wednesday, July 5, 2023 informing and discouraging the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) its members, and Point of Sale (PoS) Operators from engaging in coordinated or concerted efforts (otherwise known as price-fixing or cartel), and or acting in furtherance of any such coordinated or concerted efforts to uniformly determine, announce or implement changes in price[s] of services they render.
Executive Vice Chairman/ Chief Executive Officer, Mr Babatunde Irukera in a statement yesterday said 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.
The Commission noted that it had been monitoring news channels regarding subjects of regulatory concern and has become aware of what appears to be an adamance of AMMBAN and insistence on a membership-wide implementation of illegal conduct.
The Commission said the impunity associated with defiance or persisting in a course of action prohibited by law, and clearly forbidden by regulators usually constitutes aggravating factors in determining penalties for illegal conduct where applicable.
“To be clear, the Commission has not sought to limit the prerogative of PoS service providers to determine and set prices for services in a manner of their choosing subject to Section 127 of the Federal Competition and Consumer Protection Act 2018 (FCCPA), which prohibits manifestly unjust or exploitative prices.
“As a matter of fact, and to the contrary, the Commission respects and encourages a pricing methodology that is the product of market forces in a free, competitive and undistorted market. There is no evidence that the PoS market lacks sufficient players or competition in Lagos which is the subject of the announcement, or anywhere else for that matter.
“The Commission welcomes the inherent powers and discretion of each PoS operator to set their prices based on their own internal mechanisms and relevant markets, providing consumers with choices and the best possible prices while ensuring profitability.
“The FCCPA provides the Commission with statutory tools to ensure compliance and penalise violations of the law. As previously noted, some of these penalties are stiff.
“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.
“Consequently, the ONC was issued by the Commission and served on AMMBAN. The Commission recognises that not all members can be personally served, or will become aware through service on AMMBAN. 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.
“This cautious and collaborative approach underscores the Commission’s desire for a cooperative attitude to compliance. The ONC however conveys the Commission’s will to enforce the law including, and up to prosecuting violators and affiliates who may otherwise be statutorily liable for the conduct of a violating company or business.” the commission noted.
The FCCPC also advised 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.