FCCPC, LASCOPA warn businesses against indiscriminate pricing, labelling

By Oluwatope Lawanson

The Federal Competition and Consumer Protection Commission (FCCPC) has warned that failure by businesses to comply with consumer protection regulations on price display, product labelling and refund policies will attract sanctions.

At a stakeholder engagement on Wednesday, the Executive Vice Chairman/Chief Executive Officer of FCCPC, Mr Tunji Bello, said the sanctions included possible sealing of premises.

The event was organised by FCCPC in collaboration with Lagos State Consumer Protection Agency (LASCOPA).

The event held at the Lagos Chamber of Commerce and Industry, Alausa, Ikeja.

It had the theme: “Price Tagging, Minimum Labelling Requirements and Return/Refund: The Implications of Non-Regulatory Compliance”.

The FCCPC boss was represented by the South-West Zonal Coordinator of FCCPC, Dr Olubunmi Otti.

According to him, there is need to strengthen compliance and build trust in Nigeria’s marketplace.

“Lagos is the commercial centre of Nigeria where millions of transactions occur daily, but those transactions depend on one essential ingredient: trust.

“Consumers must be confident that the price they see is the price they will pay, that product information is reliable and their rights to refund, replacement or repair will be respected,” he said

The FCCPC boss stressed that price tagging is a fundamental legal obligation, not a discretionary practice.

He said: “Displaying prices is not simply good business practice; it is a basic requirement of fairness.

“A consumer should know what an item costs before deciding whether to buy it.”

Bello added that failure to display prices and quoting different prices for the same product undermine transparency and erode consumer confidence.

“The law requires businesses to display prices clearly in the currency of the Federal Republic of Nigeria.

No one should have to take a product to the checkout before learning its price,” he said.

According to him, clear pricing promotes transparency, reduces disputes and encourages repeat patronage.

On product labelling, Bello said that consumers had the right to adequate information about products.

“Product labels should clearly identify what a product is, who made it, what it contains where necessary, when it expires and how it should be used safely,” he said.

He said that manufacturers, importers and distributors shared responsibility for ensuring proper labelling across the supply chain.

“This is especially important for food, medicines, cosmetics and household chemicals.

“Proper labelling protects consumers and also protects responsible businesses,” he added.

Bello warned that inadequate or misleading labels could expose consumers to health risks and make it difficult to trace product sources.

The FCCPC boss also faulted the widespread use of no refund policies by businesses.

He said that the law gave consumers the right to repair, replacement or refund in defined circumstances.

He said that businesses could not rely on notices such as ‘No refund after payment’ where the law provided otherwise.

According to him, consumers are entitled to remedies where goods are defective, unsafe, unsuitable for purpose or not as described.

“Every transaction carries an implied warranty that goods supplied will be of acceptable quality and fit for purpose,” Bello said.

The FCCPC chief warned that non-compliance would attract enforcement actions by the xommission.

“These requirements are not optional standards. They are legal obligations under the Federal Competition and Consumer Protection Act.

“Where businesses fail to comply, the commission may issue compliance notices, require corrective action, impose administrative penalties or take other enforcement measures,” he said.

Bello added that in serious cases, business premises could be sealed, while courts could order compensation for affected consumers upon conviction.

He also highlighted reputational risks, noting that poor customer experiences now spread rapidly through digital platforms.

According to him, a single unresolved complaint can quickly reach thousands of potential customers.

‘Rebuilding trust is often far more difficult than complying with the law in the first place,” he said.

Bello therefore urged businesses to see compliance as a strategic investment rather than a burden.

“Businesses that comply with the law should see not regulation as an obstacle, but as a framework that supports fair competition and sustainable growth,” he said.

He advised operators to strengthen internal systems and give attention to staff training.

“Ask yourselves: Are your prices clearly displayed? Do customers pay exactly what is advertised? Are your labels accurate? Are your refund policies consistent with the law?” he said.

According to him, many consumer complaints arise from weak internal processes rather than deliberate misconduct.

“These are issues businesses can address to reduce disputes, strengthen customer confidence and minimise regulatory risks,” he added.

Bello emphasised the importance of collaboration in consumer protection, noting that no single institution could effectively regulate the marketplace.

He said that the marketplace was too large and dynamic for any regulator to work in isolation, saying that success would depend on cooperation among regulators, businesses and consumers.

He commended LASCOPA for partnership, and pledged continued engagement, education and coordinated enforcement.

“Our goal is to build a marketplace where fairness, transparency and accountability become the standard,” he said.

Earlier, the General Manager/Chief Executive Officer of LASCOPA, Mr Afolabi Solebo, described the engagement as timely, saying that enforcement against unfair trade practices had been intensified across the country.

Solebo said businesses had been sanctioned for failing to display prices, selling expired products, using deficient labelling and refusing legitimate refund requests.

He said: “These are not isolated lapses. They are systemic gaps that erode consumer confidence, distort fair competition and weaken market integrity.”

He stressed that compliance with pricing, labelling and refund obligations was mandatory under the law.

“It is not a matter of discretion. It is a legal obligation under the Federal Competition and Consumer Protection Act, 2018 and the Lagos State Consumer Protection Agency Law, 2025,” he said.

Solebo added that inadequate labelling and poor refund practices could lead to product recalls, administrative penalties and reputational damage.

“A label is not decoration; it is a contract of information between the producer and the consumer,” he said

Solebo. urged businesses to adopt robust compliance systems, conduct regular audits and training of staff.

“Compliance is not overhead; it is capital. It secures customer loyalty, insulates against enforcement action and supports long-term business viability,” he said.

The LASCOPA boss reiterated that the partnership between FCCPC and LASCOPA, backed, by a Memorandum of Understanding, would enhance enforcement, consumer education and market surveillance.

He called on stakeholders to embrace compliance and work collectively to build a transparent and accountable marketplace.

“A thriving economy rests on trust. Price tagging, accurate labelling and honourable return policies are the standards that sustain that trust,” he said.