Emekus & Sons Megastore is a popular shop in Alaba Market, Lagos State. They deal mainly in household electrical and cooking equipment. The business is duly registered with the Corporate Affairs Commission. Sarah and Dele are work colleagues. They are interested in purchasing some personal household items. Sarah wants to buy a new hairdryer, while Dele needs a new refrigerator. Sarah’s old hair dryer blew out when PHCN supplied high-voltage current, while Dele just got a new apartment and is intent on furnishing it. Madam Aisha recommended Emekus & Sons to both her colleagues. They both made their purchases.
Excited about her purchase, Sarah noticed several issues shortly after. The hairdryer wasn’t heating up properly, and the heat control regulator did not work. Dele, on the other hand, realized that the refrigerator was a refurbished one, although he was specifically told it was new, and he had been overcharged by almost 200%. They made attempts to contact the store to complain and return the products, but their efforts were frustrated by staff of Emekus & Sons. They claimed that their purchase receipt contained an agreement that goods are not refundable. So, they refused to offer a refund, price adjustment, or replacement for either product. Instead, they were issued a stern warning to desist from contacting the store unless they wanted to be arrested. Sarah is now perplexed and spoke to her friend, Deola. As a lawyer, Deola explained to Sarah her rights and obligations as a consumer in Nigeria under the Consumer Protection Laws.
WHAT ARE CONSUMER PROTECTION LAWS?
Consumer protection laws provide a shield for consumers. They are designed to uphold the interests of consumers and protect them from the arbitrary excesses of producers and deliverers of goods and services.
Nigeria practises a capitalist system, and this can lead to the creation of monopolies, abuse of market position, the use of substandard raw materials to enhance profit, amongst other excesses by manufacturers[i].
Therefore, consumer protection laws are necessary to prevent these occurrences. Additional reasons for Consumer Protection in Nigeria include the following:
To facilitate ease of access and innovation to product and service providers who operate transparently;
To encourage fair competition amongst organisations through the enforcement of fair competition laws;
To ensure that consumers can get optimum value for their money spent;
To ensure that consumers always have a means of seeking redress when there has been an infringement by fraudulent business owners.
REGULATIONS WHICH GOVERN CONSUMER PROTECTION IN NIGERIA
In Nigeria, the primary legislation which governs the sphere of Consumer Protection is the Federal Competition and Consumer Protection Act, 2018 (hereinafter referred to as “FCCPA”[ii]). Before the regime of the FCCPA, the Consumer Protection Council Act, 2004 (“CPCA”) provided for the rights and duties of Consumers in Nigeria[iii].
However, there are regulators in other sectors who have concurrent jurisdiction with the FCCPA as regards consumer protection. Examples of such regulators include the Central Bank of Nigeria (‘CBN’) (which regulates the regime of consumer protection practices of financial institutions); the National Electricity Regulatory Commission (‘NERC’) (which aims to ensure the delivery of safe, secure, reliable and fairly charged electricity tariffs and supply to consumers); the National Agency for Food and Drug Administration and Control (‘NAFDAC’[iv]) (which champions the protection of consumers by regulating the manufacture, distribution, sale, and importation of foods, drugs, chemicals, medical equipment, packaged drinks and cosmetics). Further examples of organisations with similar scope and jurisdiction as the FCCPA include the Nigerian Communications Commission (‘NCC’); Standards Organisation of Nigeria (‘SON’[v]), Securities and Exchange Commission (‘SEC’[vi]), amongst others.
On the other hand, any person/organisation involved in the production or the trade of goods, or the provision of services in Nigeria is required to comply with the consumer protection provisions of the FCCPA. The FCCPA also governs all commercial activities carried out by any body corporate, agency of the Government of Nigeria, State, or Local Government agency.
THE RIGHTS OF A CONSUMER UNDER THE FCCPA
The FCCPA protects the rights of consumers in Nigeria. According to S. 167(1), FCCPA, a consumer is any person to whom a service is rendered or who purchases or offers to purchase goods other than for the purpose of resale or for the production or manufacture of another good.
As a Consumer, some of the major rights[vii] provided for by the FCCPA include the following[viii]:
The right to a full disclosure of the price of a good/service in a language and manner which is easy to comprehend by an average consumer[ix]. The value of the good/service should be displayed in the Nigerian Currency and in a conspicuous part of the product/service advert;
Trade descriptions should be clearly displayed[x];
The right to knowledge of the status of a good/service; that is, whether the product is new, used, or refurbished/reconditioned[xi];
The right to select the goods/services of choice. A consumer has the right to select the particular good he wants to order from a vendor[xii];
The consumer has the right to cancel any advance booking or reservation or order for a good/service subject to a reasonable cancellation charge by the Product Vendor/Service Provider[xiii]. The determinant of this ‘reasonable cancellation charge’ is provided for in S. 120(2). Additionally, where a person who reserved a booking or order is dead or was hospitalised, the vendor/service provider should not charge a cancellation fee to revoke the booking/order placed[xiv];
As a general rule, a consumer is not ordinarily responsible for the damage or loss of goods displayed by a seller. Goods sold or displayed in an open stock can be examined by consumers and they have the right to select their choice[xv];
A consumer has the right to return unsafe, hazardous, or defective goods and receive a refund. The terms of refunds are also provided for in the FCCPA[xvi];
When marketing goods, a business or service provider must not directly or indirectly give a false or misleading representation concerning material facts relating to the product or service[xvii];
Any undertaking or agreement which, amongst other things, aims to deprive or waive a consumer’s right to return a defective good is prohibited[xviii].
In addition, the FCCPA’s definition of what constitutes goods and services includes virtually every type of good, product, and service, be it industrial, professional, or where goods are sold in conjunction with the rendition of a service which is provided in Nigeria. There are generally no exceptions to the protections a consumer may enjoy under the FCCPA. However, an organisation/individual may be exempt from liability if it operates in a regulated industry, and the violation which has occurred was ordered by a regulatory authority exercising jurisdiction over that industry.
Furthermore, the FCCPA prohibits anti-competitive and restrictive practices aimed at distorting competition or which can form an abuse by dominant market powers[xix]. It established the Federal Competition and Consumer Protection Commission (‘FCCPC’[xx]) to implement its aims and functions[xxi].
The FCCPC, amongst other things, is empowered to[xxii]:
Certify that goods and services meet the required standard;
Alert the public of hazardous goods and service providers;
Make reasonable efforts to prevent the production and distribution of hazardous or imminently hazardous goods and services, including the sealing of premises of production;
Enforce compliance with the provisions of the FCCPA by manufacturers, suppliers, dealers, distributors, retailers, and all parties involved in the chain of manufacturing and supply of goods and services in Nigeria.
It also investigates allegations of breach of consumer protection rights pertaining to issues of quality and function of goods and services[xxiii]. Cases can be submitted by individuals, recognised consumer protection agents, industry regulators, and even the FCCPC itself.
MECHANISMS FOR REDRESS IN THE EVENT OF AN INFRINGEMENT
Having reviewed the rights of a consumer under Nigeria’s major consumer protection law, the next question which follows is ‘can and how do consumers have a means of seeking redress when their rights are infringed?’ and if yes, ‘what kind of redress is available for an aggrieved consumer?’.
Yes, a consumer can seek redress when their rights are infringed. An aggrieved consumer can lodge a direct complaint to the FCCPC, recognised consumer protection group(s), or with the industry regulator who has regulatory authority over the defaulting business. The FCCPC can also, on its own motion, initiate an investigation into an infringement.
The FCCPC is vested with the power to carry out investigations or inquiries in relation to complaints of consumer right infringements and on any matter it deems necessary in connection with issues within the scope of the FCCPA. It also has the right to ‘resolve disputes or complaints, issue directives and apply sanctions where necessary’[xxiv].
It should be noted that per the FCCPA, there is no stipulated limitation time for when a complaint and an investigation into an infringement can be made. So, the prevailing general limitation time in Nigeria of six (6) years for tortious and contractual matters will apply. Additionally, the FCCPA does not clearly provide a timeline for processing investigations. However, the FCCPC expresses its intent to process grievances as quickly as possible. In line with the Commission’s commitment to offer quick redress to valid complaints, it has put its redress time between one (1) and forty-five (45) days[xxv].
CONCLUSION
Sarah, as a consumer in Nigeria, is covered under the FCCPA, which guarantees her the right to a full refund for the defective hairdryer. As explained above, if the service provider refuses to accept the return of the defective goods, she can seek redress by filing a complaint with the FCCPC.
In conclusion, the issue of consumer rights is indeed a vibrant area for discussion, especially in Nigeria, where consumers still face several issues during the consumption and utilisation of goods and services. Outrageous prices, the presence of numerous fake products/service providers, and the inability to get refunds for defective products are some of the major issues that ail Nigerian consumers. Therefore, consumer protection laws such as the FCCPA play a crucial role in ensuring that consumers of goods and services have access to quality, affordable, and safe products. It also ensures fair play and the absence of unreasonable monopolies among industry players. This, in turn, boosts the confidence of consumers to purchase products and services in Nigeria and aids the development of the Nigerian economy.
REFERENCES
- Federal Competition and Consumer Protection Act, 2018 (“FCCPA)
- Liberto D. (2023, August 16). What are Consumer Protection Laws? Investopedia. https://www.investopedia.com/articles/pf/10/know-your-consumer-protection-laws.asp
- The Federal Competition and Consumer Protection Act (2018). https://fccpc.gov.ng
- Muse-Sadiq A., Abada M. (2022, May 19). Consumer Protection Laws and Regulations Nigeria 2022. Mondaq. https://www.mondaq.com/nigeria/dodd-frank-consumer-protection-act/1194212/consumer-protection-laws-and-regulations-nigeria-2022#:~:text=protect%20and%20promote%20consumers’%20interest,of%20market%20power%20in%20Nigeria.
- NAFDAC Act, Cap N.1, LFN 2004. https://www.nafdac.gov.ng/wp-content/uploads/Files/Resources/Regulations/NAFDAC_Acts/NAFDAC-ACT-Cap-N.-1-LFN-2004.pdf
- For example, S. 5(1)(a) SON Act, 2015. https://nigeriatradeportal.fmiti.gov.ng/media/SON-ACT-2015.pdf
- For example, S. 38 & 67,Investment and Securities Act (2007). https://sec.gov.ng/investment-and-securities-act/
- Part XV, FCCPA.
- Adebayo O. (n.d.). Legal Regime For Consumer Protection and Competition In Nigeria. https://spaajibade.com/1534-2/
- S. 115. FCCPA
- S.116, FCCPA
- S. 117, FCCPA
- S. 119, FCCPA
- S. 120, FCCPA
- S.120 (3), FCCPA
- S. 121(1) and (3), FCCPA
- S. 122, S. 122(a) and (b), FCCPA
- S. 125, FCCPA
- S. 129 (1), FCCPA
- Supra, note. 2
- S. 3, FCCPA.
- S.17, FCCPA
- S. 18, FCCPA.
- S. 146, FCCPA
- S. 17(e), (h), FCCPA. Additionally, the FCCPC can summon witnesses, call for and examine documents in order to verify claims of infringement and do proper investigations.S. 18(4).
- Supra note. 8