The Federal Competition & Consumer Protection Commission (FCCPC), has warned the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) not to engage in illegal increase in Point of Sale (PoS) charges.
The Executive Vice Chairman/Chief Executive Officer of FCCPC, Babatunde Irukera, in a statement on Monday, said the action comes as a reminder to the operators that its earlier advisory to them still stood.
According to Irukera, “On Wednesday, July 5, 2023, the Federal Competition & Consumer Protection Commission issued a Release/Advisory 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.
“The Commission from monitoring news channels, and continuing surveillance regarding subjects of regulatory concern has become aware of what appears to be an adamance of AMMBAN and their insistence on a membership-wide implementation of illegal conduct.
“Specifically, certain news coverage and reportage suggest that a supposed national publicity secretary of the purported AMMBAN has dismissed regulatory statements while confirming a resolve to execute what has been declared illegal, which is a concerted and coordinated approach to uniformly fixing and implementing prices or modifications thereto.
The FCCPC helmsman warned that the Commission will not fail to invoke the full weight of the law on the Association should they decide to go ahead with their plan to increase PoS charges.
The Commission expressed concern about such statements, noting that 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.
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.
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 constitute an infringement of the law.
“The Commission therefore 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.
“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,” the Commission said.
