By: Amadi Vincent Uzoma
The Federal Competition and Consumer Protection Commission (FCCPC) has warned companies against helping to increase the prices of food.
Adamu Abdullahi, Acting Chief Executive Officer (CEO) of FCCPC, disclosed this in a statement on Friday while reacting to reports on February 7, 2024, that the Federal High Court had ordered the Federal Government to fix the prices of certain food products.
A wide variety of items are included, from basic necessities such as milk, flour, salt, and sugar to vehicles, bicycles, motorbikes, and their spare parts. According to Abdullahi, the FCCPC will not tolerate price gouging, adding that the legal consequences will be swift and severe.
He said any business engaged in activities that contribute to price increases in the food chain sector will now be warned to cease operations immediately or face the full force of the law. “The Commission’s priority remains to address important competition and consumer protection issues in the food chain sector,” Abdullahi said.
“The Commission’s monitoring efforts show that actors in the food chain and distribution sector, including at the retail level, engage in schemes, price gouging, hoarding and other /other unfair strategies to limit the food supply, manipulate and inflate prices food prices blindly; This behavior violates both ethical and legal rules. “Taking advantage of consumer anxiety and vulnerability to increase prices and restrict or distort competition is abhorrent, immoral, exploitative and illegal.
“Further, the use of undue influence, imbalance of bargaining power, unfair tactics and similar conduct in the marketing and supply of goods and services violates Sections 17 and 124 of the FCCPA and will be punished by law. “Any business engaging in activities that contribute to price increases in the food chain sector is warned to cease operations immediately or face the full force of the law.
The Commission will not tolerate any action that compromises the integrity of the food chain sector and the legal consequences will be swift and severe.” Additionally, Abdullahi, who described the court order as an extraordinary intervention in the free market economy, said the FCCPC has no mandate to regulate prices.
“However, in rare cases and pursuant to Part XI and Section 88 of the Federal Competition and Consumer Protection Act (FCCPA), the Commission may advise the President to set prices for certain goods and services, based on empirical evidence. “The Commission understands the natural anxiety that consumers and businesses feel. They, therefore, acknowledge and welcome the ongoing commitments and progressive measures aimed at preventing price increases throughout the food distribution chain Abdullahi said the FCCPC coordinated.
Together with the Ministry of Industry, Trade and Investment, and relevant parties, we are developing measures to solve the problem of too high raw material prices.
