The Federal Competition and Consumer Protection Commission (FCCPC) has ordered the temporary closure of an Abuja consumer goods stores over alleged deceptive pricing and lack of transparency.
The order for the closure of the stores followed a visit on Friday, February 16, 2024, by officials of the Commission who conducted an on-the-spot check on the prices of goods on display on the shelves.
On January 8, 2024, the Commission investigated allegations of practices that contravened its regulations at the store following reports of deceptive pricing.
At the end, it was discovered that the stores had been displaying lower prices on its shelves but charged customers higher prices at pay-point at the checkout counter in contravention of Section 115 of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
The Commission said in a statement on Monday that further investigations in all branches of the stores in Abuja to ensure a comprehensive understanding of the issue and implement corrective measures across the entire chain confirmed the allegations against them.
Consequently, the Commission said it promptly summoned some staff of the stores management to appear before it on February 12, 2024, to discuss corrective measures.
However, the invited staff failed to appear without any justification, raising concerns about potential violations under Section 33(3) of the FCCPA.
On February 16, 2024, the Commission said its operatives visited the stores and confirmed through random checks that the deceptive pricing practice did not only continue, the cashiers were indeed charging prices at their discretion, leaving unsuspecting customers vulnerable to unfair pricing.
In exercising its authority under Section 18(f) of the relevant consumer protection regulations, the Commission said it decided to temporarily seal the premises of the stores to allow them time to readjust their pricing system.
Subsequently, following a mutual understanding and commitment from the stores to implement a transparent pricing system, the Commission said it ordered the reopening of the stores on February 16, 2024, at about 7:00 PM.
“The Commission is aware that similar practices may be occurring at other FCMG outlets nationwide. These outlets are advised to cease from such practices immediately to avoid consequences.
“Businesses are expected to display transparent pricing information to empower consumers to make informed purchasing decisions, especially during challenging economic times,” the Commission said.
While reiterating its commitment to combating all forms of exploitative or misleading practices that undermine consumer rights, it would continue to protect consumers’ rights and prohibit deceptive business practices.
It drew attention to Section 115 of the Federal Competition and Consumer Protection Act (FCCPA), which outlines potential penalties for violations, including fines for organizations and imprisonment for directors.
The Ag. Executive Vice Chairman/Chief Executive Officer of the Commission, Adamu Abdullahi, said the FCCPC encourages all businesses to adhere to fair and transparent pricing practices to ensure consumer protection and a healthy market environment.
