The Federal Competition and Consumer Protection Commission (FCCPC) has threatened to penalise businesses involved in price fixing and gouging, issuing a one-month moratorium for them to reduce prices.

Price fixing occurs when two or more companies collude to set prices for their goods or services at a certain level, rather than allowing market forces to determine prices.

While on the other hand price gouging refers to the practice of charging excessively high prices for goods or services, often in response to a shortage or emergency situation.

Speaking at a stakeholder meeting on explorative pricing on Thursday, Tunji Bello, executive vice-chairman and chief executive officer (CEO) of FCCPC, said both practices harm consumers and are considered unfair business practices.

He warned business owners and companies to desist from exploitation.

“We have observed, for instance, that the margin in the prices of imported goods is very disproportionate in many cases and, in the case of locally produced goods, excessively inflated,” Bello said.

“This is an untenable situation, particularly in the retail segment, where we have identified patterns of price fixing perpetrated by some market associations, price gouging, and other anti-consumer practices.

“From our findings, the penchant to hike prices arbitrarily is also common among sellers of food items and transport operators.

“When the foodstuff sellers were engaged, their common response was that the cost of transportation had increased. But how justifiable is it for the tomato seller to double the price of a basket of tomatoes simply because they paid a higher transport fare?

“Whereas the price of the same basket of tomatoes was far cheaper at another market within the same jurisdiction surveyed by our field officers. Now, the question: did the seller who sold at a lower price not also pay the transport fare?”

Bello said the law empowers the commission to impose penalties.

“In view of the current situation in Nigeria, let me, however, be very unequivocal. Price gouging and price fixing are not only unethical, but patently illegal under the FCCPA,” he said.

“Section 17 of the Act empowers the Commission to eliminate anti-competitive practices, misleading, unfair, deceptive, or unconscionable marketing, trading, and business practices.

“As such, the FCCPC has the will and the capacity to invoke the full weight of the law against those found culpable of exploiting consumers for undue profit.

“Under Section 155, violators, whether individuals or corporate entities, face severe penalties, including substantial fines and imprisonment if found guilty by the court. This is intended to deter all parties involved in such illicit activities.”

‘ENFORCEMENT TO BEGIN IN SEPTEMBER’

The FCCPC CEO, therefore, called on all stakeholders across the ecosystem to embrace the spirit of patriotism and cooperation.

He also said the law empowers the commission to impose heavy fines for breaches and also prosecute offenders which could lead to jail terms.

“In the spirit of democracy, we are first exploring the option of dialogue. It is also in this spirit that we are giving a moratorium of one month (that is, September) before the commission will start firm enforcement,” he said.

“Let us work together to create a marketplace that is not only competitive but also fair and just.”

Bello said the commission is committed to sustaining dialogue with stakeholders, monitoring compliance, and taking decisive action where necessary.

He assured all stakeholders that the FCCPC would ensure every complaint is addressed accordingly.

Some of the complaints raised by trade unions at the event include electricity tariff hike, petrol subsidy removal, taxes, corruption, insecurity, among others.