FCCPC shuts electronics company over consumer complaints in Lagos

By Oluwaseun Nubi

The Federal Competition and Consumer Protection Commission (FCCPC) on Tuesday sealed the Lagos office of CASCO Electronics Co. Ltd. over alleged refusal to honour regulatory summons and compliance directives issued in connection with a consumer complaint

Mrs Olubunmi Otti, South-West Zonal Coordinator, FCCPC, said during the enforcement that the action followed a complaint lodged with the commission on Jan. 16, 2025, concerning the sale of an allegedly defective solar battery.

She said the commission began an investigation and subsequently invited the company on several occasions to respond to the allegations.

According to Otti, CASCO Electronics failed to honour the invitations, a summons and a compliance notice issued pursuant to the provisions of the Federal Competition and Consumer Protection Act (FCCPA), 2018.

She said the compliance notice outlined the nature of the alleged violation, the remedial steps required, the timeline for compliance and the consequences of non-compliance.

“I would like to invite this undertaking, CASCO Electronics, to come before the commission to answer questions. CASCO Electronics refused.

“Again, the commission issued a summons and subsequently a compliance notice, but the company still refused to appear before the commission,” she said.

Otti said the commission’s action was based on Section 150(4)(a) of the FCCPA, 2018, which empowers the FCCPC to seal premises where an undertaking fails to comply with a compliance notice.

“Consequently, in exercise of the powers of the FCCPC under Section 150 of the FCCPA 2018, the commission has today proceeded to seal these premises.

“This enforcement action is not punitive in the first instance, but protective and corrective,” she said.

She said the premises would remain sealed until the commission was satisfied that the alleged breach had been remedied.

“The sealing will remain in force until the commission is satisfied that the prior breach has been fully remedied, at which point a compliance certificate will be issued under Section 150(3) of the FCCPA 2018,” Otti said.

She advised consumers to exercise caution when purchasing products and to always obtain receipts and transaction records.

“We urge consumers to ensure they buy from reputable organisations, collect their receipts and follow due process before committing their money,” Otti said.

She also urged businesses to respond promptly to correspondence from regulatory agencies.

“When you receive a letter from the FCCPC or any regulatory agency, you should appear and cooperate.

“The FCCPC is not against any business in Nigeria, but we want businesses to operate ethically so that consumers are satisfied while businesses continue to thrive,” she said.

Reacting to the development, President of the Industrial Material Dealers Association, Mr Opara Uchenna-Martins, said he could not fault the commission for carrying out its statutory responsibilities.

“I cannot stop the government from carrying out its duty. Whatever led to the FCCPC action, I know it has to do with protecting consumers, and consumers deserve to feel protected,” he said.

Uchenna-Martins said CASCO Electronics had built a reputation in the market but expressed concern over its alleged failure to respond to the commission’s invitations.

“CASCO is a reputable company, but I believe there may have been one or two issues. The problem, as I understand it, is that it refused to come and answer the FCCPC,” he said.

He urged traders and business owners to cooperate with government agencies whenever they receive official correspondence.

“Every businessman should comply whenever they receive letters from regulatory agencies.

“If any government agency contacts you, it is important to respond and resolve issues through the appropriate channels,” he said.

Uchenna-Martins added that the development was unfortunate and called for an early resolution of the matter.

“It is embarrassing for any company to face this kind of situation. I believe the matter should be resolved quickly and amicably,” he said.

(NAN)