FCCPC Defends Actions Against Price Exploitation
By Patience Ikpeme
The Federal Competition and Consumer Protection Commission (FCCPC) on Tuesday defended its recent proposed actions against price exploitation by certain retail marketers, clarifying that its interventions are not arbitrary.
In a statement issued by Ondaje Ijagwu, Director of Special Duties & Strategies at FCCPC, the commission emphasized that its findings were evidence-based, aimed at addressing specific instances where consumers are vulnerable to exploitation.
“At the FCCPC, our mandate is to safeguard consumers from unfair and deceptive practices while ensuring robust competition across all sectors. We categorically assert that prices in a competitive marketplace are determined solely by the forces of supply and demand. Price control is entirely outside the scope of our responsibilities. We have never considered, nor will we ever consider, intervening in the market to regulate prices. Our recent directives are not about controlling prices but are focused on curbing exploitative practices and anti-competitive behaviors that distort the marketplace and harm consumers,” the agency affirmed.
The statement further clarified the difference between price gouging and price fixing. Price gouging, the FCCPC explained, is an unfair practice that takes advantage of crises or economic hardships to inflate prices arbitrarily. In contrast, price fixing occurs when competitors or market associations collude to set prices without considering their own products.
Recent criticisms were raised against the FCCPC for its stance on curbing price exploitation by some retail market outlets. In response, the agency expressed its appreciation for the feedback from the Organized Private Sector and other interested parties regarding its recent directive to businesses to cease price gouging, price fixing, and other exploitative practices. “We value this dialogue and wish to clarify our position,” the statement read.
The FCCPC also justified its position based on discoveries made during market surveillance and a recent disclosure by Abdul Samad Rabiu, Chairman of BUA Cement. Rabiu had revealed that despite BUA Cement’s efforts to sell cement at a fair price of N3,500 per bag, dealers inflated prices to as much as N7,000 to N8,000 per bag. “This situation exemplifies the kind of exploitative conduct that the FCCPC is committed to addressing. Such practices make it difficult for ethical businesses to thrive,” the FCCPC noted.
“We encourage all businesses to engage in ethical and lawful practices that contribute to a fair and competitive marketplace. The FCCPC does not seek to suppress private enterprise; our role is to ensure that the market operates on principles of fairness, transparency, and accountability. When businesses, as illustrated by the cement sector case, engage in practices that harm consumers, the FCCPC will take decisive action,” the statement concluded.
