An Examination Of The Rights Of A Consumer Under The Federal Competition And Consumer Protection Laws Of Nigeria
Introduction A consumer is a person to whom a service is rendered. A consumer can also be said to be someone whopurchases or offers to purchase goods otherwise than for the purpose of resale but does not include a person who purchases any goods to used in the production or manufacture of any other goods or articles for sale.
In commercial transactions, the protection of consumers’ rights plays a vital role in fostering fair competition, ensuring economic growth, upholding ethical business practices, and ensuring the protection of the rights of consumers. In Nigeria, the legal framework governing consumer rights is primarily encapsulated in the Federal Competition and Consumer Protection Act (FCCPA). Enacted in 2018, the FCCPA represents a landmark legislation that consolidates efforts to safeguard the interests of consumers, while fostering healthy competition in the market. This article attempts a comprehensive examination of the rights bestowed upon Nigerian consumers under the Federal Competition and Consumer Protection Laws of Nigeria. This article seeks to shed light on the various dimensions of consumer protection, ranging from fair trade practices to the mechanisms in place for redress in the face of a breach of consumers’ rights. By understanding the intricacies of consumer rights, stakeholders, including consumers, businesses, and legal practitioners, can contribute to the creation of a marketplace that not only thrives economically but is also characterized by transparency, accountability, and equitable treatment of consumers.
The Rights of a Consumer under the FCCPA
The Federal Competition and Consumer Protection Act makes provisions for the rights of a Consumer. These rights are highlighted below.
Right to Information in Plain and Understandable Language A consumer is entitled to be given information in plain and understandable language. Such notice, document, or visual representation of the goods must be provided or displayed in the prescribed form, where there are standards for such. Where no form has been prescribed for such notice, document, or visual representation, such notice must be provided in plain language. To determine whether such information is in plain and understandable manner, the reasonable man’s test is applied. Hence, could an ordinary person with average literacy skills and minimal experience as a consumer of the relevant goods or service be reasonably expected to understand such information sought to be disseminated? The FCCPA created the Federal Competition and Consumer Protection Commission and empowers it to issue guidelines on methods for the assessment of whether or not a notice, document, or visual representation satisfies the requirements of being plain and understandable.
This right is rooted in the need for consumers to have full disclosure and background information about the goods and services they intend to purchase. This will enable the consumer to make an informed decision on the suitability of the goods.
Right of Disclosure of Price of Goods and Services
A consumer has the right to know the price of goods and services on display. Commercial enterprises are prohibited from displaying goods and services without adequately displaying the price to the consumers. The price of a good or service is said to be properly displayed if a written indication of the price is made in naira, the official Nigerian currency, and same is affixed, annexed, written, printed, stamped, labeled on the goods, or anything on which the goods or services are mounted for display. The price can also be contained in a brochure, catalog, or circular, as commonly found in restaurants and bars. Business enterprises are also prohibited from compelling consumers to pay prices higher than the prices displayed for goods and services. Where more than one price is displayed, a consumer is entitled to pay the lowest of the prices displayed.
This right ensures that consumers have an idea of the economic value of the goods they are seeking to purchase before making payment. This would enable them make an informed choice. Thus, online vendors who post items for sale with the caption “DM for price” are in breach of this provision, and same amounts to a breach of the consumer rights of potential consumers.
Right to Adequate Product labeling and Trade Descriptions
A trade description is any description, statement, or indication as to the number, quantity, and quality of goods. Any person involved in the production of, or the trade in goods or the provision of services has a mandatory duty to ensure that trade descriptions are applied to goods, and to any covering label on which the goods are packaged or attached to the goods. The trade description may be displayed together with or in proximity to the goods in such a way that it is likely to lead to the belief that the goods are designated or described by that description. It may also be contained in a sign, advertisement, catalog, brochure, circular, wine list, invoice, business letter, business paper, or other commercial communication for the benefit of the consumer.
Persons involved in the production of, or the trade in goods or the provision of services are prohibited from applying trade descriptions that are misleading or capable of misleading consumers. They are also prohibited from supplying or displaying goods that contain trade descriptions that are capable of misleading consumers or where such trademarks have been altered.
This right ensures that consumers are provided with essential information about a product and that consumers can compare and evaluate similar products in order to make informed decisions on their choice of purchase.
Right to Disclosure of Re-conditioned or Second-hand Goods Any person or business enterprise who offers to sell any good that has been used or are second-hand, reconditioned, rebuilt, or remade must attach a conspicuous notice that the goods have been used, are second-hand, or have been reconditioned, rebuilt, or re-made.
This is not uncommon with second-hand appliances and products sold as declutter items and japa sales.
Right to be given Sales record/detailed information of every purchase. Except where impracticable to do so, a consumer is entitled to a written record of each transaction for goods and services purchased. Such record must contain at least, the name of the seller, the address, the date, the description of the goods, the unit price, the quantity, the total price of all items purchased, the amount of tax payable, and the total price of that transaction.
Right to Select Suppliers /Consumer’s right to Unconditional Purchase.
A consumer is entitled to select a supplier of his choice. Businesses are prohibited from making it a condition precedent for offering to supply or supplying any goods or services that a consumer shall purchase any other goods or services from them, enter into an additional agreement with them or a third party, or agree to purchase any particular goods or services from a designated third party unless it can be demonstrated that it is convenient to the consumer in having those goods bundled together and such convenience outweighs the limitation of the consumer’s right to choice, or that the bundling is of economic benefit to the consumer.
This right elicits the consumer’s freedom of choice and preserves the consumer’s right to make choices based on their preferences and needs. This right may however be impracticable in businesses where monopoly reigns supreme.
Right to Cancel Advance Reservation, Booking or Order
A consumer is entitled to cancel any booking, reservation, or order for any goods or services. This right is however subject to the payment of a reasonable cancellation charge.
Such fee must however be fair and not excessive in the circumstance, having recourse to the nature of the goods or services reserved, booked, or ordered, the length of notice of cancellation provided by the consumer, the likelihood of finding another consumer between the time of receiving the cancellation notice and the time of actual cancellation as well as the general practice within the relevant industry.
Also, service providers may not impose any cancellation fee in respect of a booking, reservation, or order if the consumer is unable to honour the booking, reservation, or order because of the death or hospitalisation of the person for whom, or for whose benefit the booking, reservation or order was made.
Business enterprises who maintain a no refund policy are therefore in breach of this provision, likewise businesses that deduct a percentage upon cancellation of reservation.
Right to Choose or Examine Goods Irrespective of any statement to the contrary, a Consumer is not responsible for any loss or damage to any goods displayed by a supplier, unless the loss or damage results from action by the consumer amounting to gross negligence or recklessness, malicious behavior, or criminal conduct.Where such goods are displayed or sold in open stock, the consumer has the right to reject or select any particular item from the stock before the conclusion of the transaction. Where a consumer has agreed to purchase goods solely on the basis of description or sample, such goods must correspond with that which an ordinary alert customer would expect in such circumstances. Where the good does not meet such standards, the Consumer has a right to reject such goods. Where the supply of goods is by sample and description, the goods must correspond with the sample and descriptions provided. Failure to correspond with the sample and description gives a consumer the right to reject same.
This right is relevant in modern-day E-commerce purchases made via sales platforms, wherein the consumer does not have the opportunity to examine the goods before purchase but rather places reliance on the description offered on the sales platform. This acts as a safeguard in common cases of what I ordered Vs what I got. Right to Return Goods
A consumer is entitled to return defective goods and receive a full refund of the consideration paid for those goods, that the supplier has delivered. Where a consumer finds that goods intended for a particular purpose cannot satisfy the purpose for which they are purchased, a consumer has the right to return such goods within a reasonable time after the delivery. In cases where a consumer did not have the opportunity to examine the goods before delivery and the goods do not correspond with description, sample, type or quality contemplated, the consumer can return the goods within a reasonable time after delivery.
Protection against Deceptive Information
A producer, importer, distributor, retailer, trader, or service provider is prohibited from making any representation to a consumer in pursuance of trade, promotion, or marketing to a consumer in a manner that is capable of misleading, erroneous, fraudulent, false, and deceptive to a consumer. Such misrepresentation may relate to the provision of false or incorrect representation concerning the goods sought to be sold; reasonably misleading or likely to be misleading in any material respect concerning those goods and services; erroneous, deceptive, fraudulent in respect of the nature, properties, advantages or uses of the goods or services; amongst others. This places a responsibility on the suppliers to provide unadulterated information to consumers.
Right to Fair Dealing
A commercial enterprise or its agents are prohibited from using physical force, cohesion, undue influence, pressure or harassment, unfair tactics, or any other similar conduct against any person for the purpose of marketing any goods or services; supply of goods or services to a consumer; negotiation, execution, or enforcement of an agreement to supply goods or services to a consumer; demand for or collection of payment for goods or services. Suppliers are also prohibited from taking undue advantage of consumers with physical or mental disability, illiteracy, ignorance, etc.
Right against Unfair, Unreasonable, or Unjust Contract Terms
A commercial enterprise is prohibited from offering to supply, supply, or enter into an agreement to supply market or negotiate goods and services to a consumer for a price and/or in a manner that is manifestly unfair, unreasonable, or unjust. They are also prohibited from marketing any goods or services or negotiating, entering into, or administering a transaction or an agreement for the supply of any goods or services, in a manner that is unfair, unreasonable, or unjust. A contract term or agreement is said to be unfair, unreasonable, or unjust if it is excessively one-sided in favour of any person other than the consumer, is so adverse and inequitable to a consumer, or the fact and effect of the term were not drawn to the attention of the consumer.
Right to Notices for Certain Terms and Conditions
A consumer has the right to any notice that seeks to limit in any way the risks or liabilities of a supplier of goods and services, constitute an assumption of risk or liability by the consumer, impose an obligation on the consumer to indemnify a supplier or any other persons for any cause or constitutes an acknowledgment of any fact. Such notice must be contained in a conspicuous manner and form, such that the reasonable man’s attention would ordinarily be drawn to such notice in any circumstance. The consumer must therefore be accorded adequate opportunity to receive and comprehend the provision or notice.
Right to Quality Service
A consumer is entitled to the timely performance and completion of services. A consumer also has the right to adequate notice in cases of unavoidable delays in the rendering of such services. The services are to be rendered in a manner that reasonable persons are entitled to expect. The consumer is also entitled to the use, delivery or installation of goods that are free from defects for the performance of the service. Where the service provider utilizes the consumer’s property for the purpose of performing the services, the consumer is entitled to the return of the property in good condition as it was when the consumer made it available to the service provider.
Right to Safe and Quality Goods A consumer has a right to receive goods that are suitable for the purpose for which they are generally intended; be of good quality, in good working condition, and devoid of defects. The goods must also be usable and durable for a reasonable period, having regard to their purpose of usage, and must comply with any applicable standards set by industry sector regulators. With regards to the right of goods suitable for the purpose for which it was intended, if the consumer has a specific purpose and has informed the supplier or an undertaking of that particular purpose he wishes to acquire the goods, and the supplier offers to supply the goods, the goods supplied must be suitable for the specificpurpose as intended by the consumer. Mechanism for enforcement of Consumer Rights. A consumer may seek redress for a breach of his consumer rights by;
Referring the matter directly to the provider of such services or supplier.
Referring the matter to the applicable industry sector regulator vested with jurisdiction, where the service provider is subject to such jurisdiction.
Filing a complaint directly with the commission.
It should be noted that an aggrieved consumer can approach a competent court directly to seek redress without recourse to any of the enforcement mechanisms above.
Conclusion This article emphasizes the significant impact of the Federal Competition and Consumer Protection Act in shaping a consumer-centric market in Nigeria. It underscores the multifaceted nature of the rights granted to consumers under the legislation and their pivotal role in ensuring fair commercial transactions.
Nigeria has robust laws on consumer protection. However, most consumers are not aware of their rights under Nigerian laws. Understanding and upholding these rights are essential for consumers, as they contribute to the creation of a commercial environment that prioritizes transparency, accountability and fair treatment of consumers. Ultimately, the FCCPA sets the foundation for a consumer-centric market in Nigeria by setting out the rules of fair competition and the protection of consumers’ rights in the pursuit of economic growth and ethical business conduct.
