FCCPC: Prices of locally-made goods excessively inflated

The Federal Competition and Consumers Protection Commission (FCCPC) says the prices of locally made goods are excessively inflated by some traders who form cartels in the market.

Tunji Bello, executive vice-chairman and chief executive officer (CEO) of FCCPC, spoke on Wednesday in Lagos while addressing leaders of market associations, transport operators, and service providers at a town hall meeting hosted by the FCCPC.

Bello said the commission discovered that “cartels” excessively increase the prices of food items to exploit consumers.

“As a Commission, we are not acting out of a brainwave. Indeed, we had carried out extensive discreet market survey across the country and our findings were quite disturbing,” he said.

“We identified patterns of price fixing perpetrated by some market associations, price gouging, and other anti-consumer practices.

“We noticed that the margin in the prices of imported goods are very disproportionate in many cases; and in the case of locally produced goods, excessively inflated.

“In some areas, we discovered that some players are engaged in hoarding of grains, to create artificial scarcity, thereby distorting the market, resulting in unduly high prices of such food items.

“In our investigation, we also discovered that some traders form a cartel in the market and put barriers in the form of ridiculous membership fees intended to ensure price fixing in the market.

“Without joining them, they won’t allow anyone to sell goods in the market or provide services.”

Bello said price gouging and price fixing are unethical and “patently illegal” also under the FCCP law.

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.

“Sanctions include a fine of up to N10m and a jail term for anyone found guilty by the court,” the FCCPC boss said.

Rather than applying the full weight of the law in the first instance, Bello said the commission is “deliberately adopting the option of dialogue with the stakeholders to collaborate with us to help check unfair pricing in the market”.

‘CONSUMER PORTAL UPGRADE TO ALLOW QUICK RESPONSE TO ISSUES’

Bello said the commission is upgrading its consumer portal to allow swift responses to issues.

“The commission is upgrading its consumer engagement portal to make it more inclusive and interactive and in real time,” he added.

“In simple terms, it means that, when fully calibrated, it will be possible for any consumer who feels aggrieved to lodge a complaint and upload the receipt of the transaction as evidence and such complaint will be processed promptly free of charge with a view to ensuring that justice is done without fear or favour.”

On August 29, the FCCPC, at a stakeholder’s dialogue in Abuja, gave businesses a one-month ultimatum to reduce prices after warning them to desist from exploitation.

The commission also said its directive on price reduction to businesses intends to curb exploitative practices in the marketplace, rather than controlling prices.