The Federal Competition and Consumer Protection Commission (FCCPC) has fined the British American Tobacco (BAT) Nigeria and affiliate companies the sum of $110 million for multiple violations of the FCCP Act and others.
The management, in a statement today, said the amount was the final resolution between the Commission and BAT Parties under the FCCPC’s Cooperation/Assistance Rules & Procedure (CARP), 2021.
The Parties include the British American Tobacco (Nigeria) Limited (BATN; British American Tobacco Marketing (Nigeria) Limited (BATMN); British American Tobacco Plc; and British American Tobacco (Holdings) Limited.
FCCPC, following an investigation, had found the Parties guilty of “a range of infringements of the Federal Competition and Consumer Protection Act, National Tobacco Control Act and sundry legal instruments.”
- That BAT Parties shall be subject to a compliance and monitoring under the supervision of the Commission for a period of 24 months to ensure appropriate behavioral and business practices modification to be more consistent with compliance with prevailing competition laws/regulations; and tobacco control efforts;
- Mandatory public health and tobacco control advocacy in a manner compliant with tobacco control legislation and regulations, and satisfactory to the Commission as mitigation to evidence of a pattern of undermining, and circumventing national tobacco control policies and regulations; and
- That BAT Parties shall provide Written Assurances to the Commission pursuant to Section 153 of the FCCPA as required.
Aside from the $110 million, which was imposed upon the close of investigation by the Commission pursuant to Sections 155 of the FCCPA, Clause 11 of its Administrative Penalties Regulations, 2020, and Clause 4.2 of the Investigative Cooperation/Assistance Rules and Procedures, 2021, the parties also agreed:
Additionally, in exchange for BAT Parties fulfilling their obligations under the Consent Order, the Commission said it “withdrew pending criminal charges against BATN and at least one employee with respect to obstructing the Commission by attempting to prevent execution of the search warrant and initial lack of cooperation/compliance with steps in the investigation.”
A distorted market redounds only to the benefit of those who engage in malfeasance, is at the expense of others, and an exploitation of consumers, while undermining a stable economy.
Reiterating its commitment to its mandate to promote and ensure fair markets and protect consumer interests, FCCPC said the outcome of this investigation demonstrates the Commission’s desire “to enforce the law and hold businesses accountable; even when it takes complex, painstaking and protracted investigations.
According to the Commission, “A distorted market redounds only to the benefit of those who engage in malfeasance, is at the expense of others, and an exploitation of consumers, while undermining a stable economy.”
“It compromises a Constitutional and national priority of economic growth and shared prosperity,” it added.
