The Federal Competition and Consumer Protection Commission (FCCPC) has warned businesses against aiding hikes in the prices of food items.
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 has ordered the federal government to fix the prices of certain food commodities.
A wide range of items were included, from necessities like milk, flour, salt, and sugar to vehicles, bicycles, and motorcycles, as well as their spare parts.
According to Abdullahi, FCCPC would not tolerate price gouging, adding that legal consequences would be swift and severe.
He said any business participating in activities contributing to price gouging in the food chain sector is now warned to desist immediately or face the full force of the law.
“The Commission’s priority remains to address key consumer protection and competition issues in the Food chain sector,” Abdullahi said.
“The Commission’s surveillance efforts suggest participants in the food chain and distribution sector including at the retail level are engaging in conspiracy, price gouging, hoarding and other unfair tactics/ strategies to restrict the supply of food, manipulate and inflate the price of food in an indiscriminate manner; this conduct violates both moral and legal codes.
“Taking advantage of consumer anxiety and vulnerability to inflate prices, and restrict or distort competition, is obnoxious, unscrupulous, exploitative and illegal.
“Furthermore, the use of undue influence, imbalance in negotiating power, unfair tact and similar conduct in the marketing and supply of goods and services is contrary to Sections 17 and 124 of the FCCPA., and will be penalised under law.
“Any business participating in activities contributing to price gouging in the food chain sector is hereby warned to desist forthwith or face the full force of the law. The Commission will not tolerate actions compromising the integrity of the food chain sector, and legal consequences will be swift and severe.”
Also, Abdullahi, who described the court order as an uncommon intervention in a free market economy, said FCCPC is not mandated to regulate prices.
“However, in rare situations and pursuant to Part XI, and Section 88 of the Federal Competition and Consumer Protection Act (FCCPA), the Commission may advise the President to fix the prices of certain goods and services, based on empirical evidence,” he said.
“The Commission understands the natural apprehension consumers and businesses are experiencing. It, therefore, notes and welcomes continuing engagements and progressive measures to contain price gouging throughout the food distribution chain.”
Abdullahi said FCCPC, in collaboration with the ministry of industry, trade and investment and other stakeholders, is developing measures to address the issue of excessive commodity prices.