The Federal Competition and Consumer Protection Commission (FCCPC) has expanded its ongoing investigation into how some airlines set their ticket prices on certain domestic routes. This move follows rising public concerns about what many people believe is coordinated manipulation or exploitation in airfare pricing, especially on routes connecting the South-East and South-South as the festive season approaches. According to the Commission, the review is focused on operators flying these identified routes where unusual fare increases have been reported.
FCCPC stated that this investigation aims to examine the pricing templates used by the airlines and determine whether any actions violate consumer protection laws. Earlier in the year, Air Peace took legal action against the Commission, seeking to stop FCCPC from reviewing its pricing system after several complaints were submitted by members of the public. The Commission noted that the new steps being taken do not affect the ongoing case with Air Peace, and the inquiry will continue independently.
Providing further explanation, FCCPC Executive Vice Chairman and CEO, Mr Tunji Bello, said, “For the avoidance of doubt, we are not a price control board. But the FCCPA 2018 empowers us to check the exploitation of consumers. When we receive petitions or where we find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise.” He added that the Commission will take necessary action if it discovers that consumer welfare or market competitiveness is being threatened.
Under Section 17(b) of the FCCPA, the Commission is mandated to monitor economic activities in Nigeria in order to identify anti-competitive, anti-consumer protection, and restrictive practices that may negatively affect consumers. Section 17(e) also gives FCCPC the authority to conduct investigations it considers necessary.
The Commission explained that although it does not control prices, fair pricing remains a key objective of the FCCPA. The law provides a structure that guards consumers against excessive, misleading, opaque, or collusive pricing while ensuring that competitive market forces determine the final prices of goods and services.
With the recent spike in airfares, FCCPC is now extending its review of airline pricing patterns, the reasons behind the increases reported by consumers, and any conduct that could weaken fair competition. The Commission stated that if evidence shows a breach of the law, it will apply appropriate enforcement actions. FCCPC added that more updates on the aviation investigation will be provided as it progresses.
