Yuletide: FCCPC Warns Transport Operators Against Exploitative Fare Hikes
The Federal Competition and Consumer Protection Commission (FCCPC) has warned road transport operators across the Country against exploiting commuters through unfair or arbitrary fare increases during the yuletide season, stressing that while fare adjustments may be permissible, consumer exploitation will not be tolerated.
The Commission gave the warning in a statement issued on Sunday by its Director of Corporate Affairs, Ondaje Ijagwu, amid rising complaints from members of the public over sharp and unexplained increases in inter-city transport fares.
According to the FCCPC, increases in transport fares during festive periods are not unlawful in themselves, as operators may face seasonal demand pressures, higher operational costs and other legitimate factors that influence pricing.
However, the Commission emphasised that passengers have a right to clear, accurate and timely information about fares before travelling.
“Seasonal demand, operational pressures and other legitimate cost factors may affect transport pricing,” the statement noted.
“However, consumers are entitled to transparent fare information prior to travel, and any fare adjustment must be clearly communicated and applied fairly.”
The Commission also observed that the complaints are emerging at a time when there have been reports of reductions in the pump price of premium motor spirit in some parts of the Country.
While acknowledging that fuel cost is only one of several inputs that affect transport fares, the FCCPC said increases that are not properly explained or disclosed raise valid consumer protection concerns.
Commenting on the development, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the Commission was closely monitoring market conduct throughout the festive period.
He disclosed that the agency has intensified engagements with transport unions, park managers and operators Nationwide to curb potential abuses.
According to Bello, the engagements are preventive in nature and aimed at promoting responsible pricing, voluntary compliance with regulations and orderly market behaviour during the high-travel season.
“Price increases are not, in themselves, unlawful,” Bello said. “However, conduct that exploits consumers or takes unfair advantage of heightened seasonal demand may attract regulatory attention under the Federal Competition and Consumer Protection Act (FCCPA) 2018.”
He warned that practices such as inadequate fare disclosure, coercive conduct towards passengers or coordinated pricing arrangements among transport operators to the detriment of consumers would be subjected to strict regulatory scrutiny.
Bello further cautioned that operators found guilty of violating consumer protection laws would face stiff penalties as provided under the FCCPA.
The Commission advised commuters to confirm transport fares before making payments, demand clear disclosure of charges, retain proof of payment and report any suspected unfair or exploitative practices through the FCCPC’s complaint portal or designated hotlines.
