The federal government, through the Federal Competition and Consumer Protection Commission, (FCCPA) has fined Point of Sale (POS) operators N1 million for an illegal new pricing model.
Earlier, POS operators under the auspices of the Association of Mobile Money and Bank Agents in Nigeria, AMMBAN took the initiative to set new prices for POS transactions.
Due to the above, FCCPA issued a cease-and-desist order to OS operators.
According to the Commission, POS operators who contravene the order will be fined N10 million for corporate persons and up to three months imprisonment for private persons.
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In a statement signed by its Vice Chairman/CEO Babatunde Irukera on Monday, the FCCPC said;
“The Commission advises PoS operators that in addition to the potentially illegal conduct that is the subject of the order, contraventions of the Commission’s order carry additional consequences such as up to N10,000,000 for corporate entities; N1,000,000 and/or imprisonment of up to three months for individuals.”
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The commission said it did not seek to limit the right of POS providers to determine and price their services as they choose, under Section 127 of the Federal Competition and Consumer Protection Act of 2018, which prohibited manifestly unfair or abusive pricing.
Also, the commission stated that it respected and promoted market-based methods of pricing products in a free, competitive, and undistorted market.
However, in the development, there was no evidence that the POS market lacked appropriate members or competition in Lagos or anywhere else.
The statement read:
“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.
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“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.
“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.”
