The Federal Government, through the Federal Competition and Consumer Protection Commission, has issued a cease-and-desist order against Point of Sale operators for illegal behaviour.
This follows the decision by PoS operators to set new pricing for PoS transactions under the auspices of the Association of Mobile Money and Bank Agents in Nigeria. The new price plan went into effect on July 17, 2023.
According to the commission, PoS operators who violate the order will be fined N10m for corporate entities and N1m and/or a three-month prison sentence for individuals.
The FCCPC stated on Monday in a statement signed by its Executive Vice Chairman/ Chief Executive Officer, Babatunde Irukera, “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 stated that it has not sought to limit PoS service providers’ ability to determine and set prices for services in any way they see fit, subject to Section 127 of the Federal Competition and Consumer Protection Act 2018, which prohibits manifestly unjust or exploitative prices.
It claimed that it accepts and supports pricing methodologies that are the result of market forces in a free, competitive, and undistorted market. However, it stated that there is no indication that the PoS market in Lagos or elsewhere lacks sufficient participants or competition.
“While the Commission continues to give consideration to, and for small businesses,” the commission stated, “enforcing the law must remain non-negotiable.”
“As a result, the Commission 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, in accordance with the FCCPA and ancillary instruments.”
It stated that the ONC was served on AMMBAN. It was also mentioned that not all members can be personally served or made informed through AMMBAN service.
It went on to say, “In addition, some individuals, such as non-AMMBAN members, may become subject to the ONC.” As a result, the Commission has issued, and continues to issue, the ONC. Members are encouraged to examine the sufficiency of the ONC’s service under Section 158(4) of the FCCPA, which considers such service on their association or executives to be appropriate and acceptable.”
According to the commission, it attempted a cautious and collaborative approach but has now embraced the ONC to express its intent to enforce the law, including, but not limited to, prosecuting offenders and affiliates who may otherwise be statutorily accountable for the conduct of a violating firm or business.
“In addition to the stipulated statutory consequences, the Commission will (if necessary) prohibit merchant services and privileges to PoS operators or AMMBAN members who persist in conduct that is inconsistent with law and economic efficiency,” it added.
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