An agency of the Federal Government, the Federal Competition and Consumer Protection Commission (FCCPC), has slammed a $110 million fine on British American Tobacco (BAT) Nigeria and affiliate companies for multiple violation of the FCCP Act and others.
A statement by the management of the commission in Abuja on Wednesday, December 27, said the companies also infringed on the National Tobacco Control Act and sundry legal instruments.
The commission said the amount was agreed after a mutual engagement between the Commission and BAT parties under the FCCPC’s Cooperation/Assistance Rules & Procedure (CARP), 2021.
FCCPC said its Cooperation/Assistance Framework (CAF) provided for benefits such as possible reduced monetary penalties and waiver of the application of the Commission’s Administrative Penalties Regulations 2020, among others.
The Commission said the BAT parties’ would also be subject to a compliance and monitoring under the supervision of the FCCPC for 24 months to ensure appropriate behavioural and business practices.
FCCPC said that a mandatory public health and tobacco control advocacy would be done by the companies in a manner compliant with tobacco control legislation and regulations as part of the agreement.
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The Commission stated that” “Upon full consideration of the record, BAT Parties’ additional articulation, representations and correspondence; totality of evidence procured, violations established under law, BAT Parties’ entry into, and conduct in cooperation and assistance under the Commission’s CAF; the Commission closed the investigation by the Commission and BAT Parties’ mutual execution of a Consent Order and Notice with both parties agreeing:
“That BAT Parties shall pay a penalty of $110,000,000 under and pursuant to Sections 155 of the FCCPA, Clause 11 of the Federal Competition and Consumer Protection Commission’s Administrative Penalties Regulations, 2020 and Clause 4.2 of the Federal Competition and Consumer Protection Commission’s Investigative Cooperation/Assistance Rules and Procedures, 2021;
“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.
“In exchange for BAT Parties fulfilling their obligations under the Consent Order, the Commission 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.”
The Commission on August 28, 2020, opened an active investigation with respect to BAT Parties.
The commencement of the investigation was based on the Commission’s satisfaction that a series of credible pieces of information and intelligence were actionable enough for broader and deeper inquiry.
Upon satisfying the Federal High Court that there was probable cause and sufficient evidence to exercise advanced statutory regulatory/investigatory tools, the court issued an Order and Warrant of Search and Seizure.
The Commission on January 25, 2021 executed simultaneous and contemporaneous searches and seizures at multiple BAT parties’ locations and a location of a service provider.
The Commission gathered, received and procured substantial evidence from forensic analysis of electronic communications and other information/data obtained during the search, as well as other evidence procured during, and after the search from other legitimate sources.
“Additional investigation, including proffers, hearings, transcripts of sworn testimonies, and continuing analysis of evidence established and supported multiple violations of the FCCPA and other enactments,” the Commission said.
The Commission reiterated its commitment to its mandate to promote and ensure fair markets and protect consumer interests.
According to it, the outcome of the investigation demonstrates that commitment and the Commission’s desire as well as will to enforce the law and hold businesses accountable; even when it takes complex, painstaking and protracted investigations.
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