The Federal Competition and Consumer Protection Commission (FCCPC), has issued a cease-and-desist order to Point of Sale (POS) operators from conduct that constitutes an infringement of the law.
This follows the move by POS operators, under the umbrella of the Association of Mobile Money and Bank Agents in Nigeria, to fix new prices for POS transactions.
The FCCPC, in a statement signed by its Executive Vice Chairman, Babatunde Irukera, said POS operators found violating the order will pay N1m as a fine and N10m for corporate entities or face a prison sentence for three months.
“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 as a fine or a prison sentence of up to three months for individuals.”
According to Irukera, the commission has not sought to limit the prerogative of PoS service providers, but to regulate and set prices for services in a manner of their choosing, subject to Section 127 of the Federal Competition and Consumer Protection Act 2018, which prohibits exploitative prices.
He noted that, the commission respects and encourages a pricing methodology that is free, competitive, and undistorted, adding that, there is no evidence that the PoS market lacks sufficient players or competition in the country.
“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.
“The ONC had been served on AMMBAN and 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.”
The Executive Vice Chairman, added that, the body had tried cautious and collaborative approach but has now adopted the Order and Notice of the Commission (ONC) to enable convey its will in enforcing the law including, prosecuting violators.
“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.”
