The Federal Competition and Consumer Protection Commission (FCCPC) has imposed a fine of $110 million on British American Tobacco (BAT) and its affiliate companies for violating the Federal Competition and Consumer Protection Act, National Tobacco Control Act, and other legal instruments.
The FCCPC revealed this decision in a statement on its official page.
The investigation into BAT and its affiliated companies, including British American Tobacco Nigeria Limited, British American Tobacco Marketing (Nigeria) Limited, British American Tobacco Plc, and British American Tobacco (Holdings) Limited, commenced on August 28, 2020.
The FCCPC initiated the inquiry based on credible information and intelligence it received.
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The FCCPC outlined that the investigation, which involved proffers, hearings, sworn testimonies, and ongoing analysis of evidence, confirmed multiple violations of the Federal Competition and Consumer Protection Act (FCCPA) and other relevant laws.
During the investigation, BAT Parties sought cooperation under the Commission’s Cooperation/Assistance Rules & Procedure, 2021, leading to mutual engagements.
As part of the resolution, BAT Parties, through written submissions, accepted cooperation under the Commission’s rules.
This cooperation entailed possible reduced monetary penalties, waiver of the Commission’s Administrative Penalties Regulations 2020, and prosecutorial discretion.
The FCCPC emphasized that the penalties were determined after careful consideration of the record, BAT Parties’ representations, and correspondence.
The key components of the resolution include a penalty of $110 million, compliance and monitoring by BAT Parties for 24 months, mandatory public health and tobacco control advocacy, and the provision of written assurances by BAT to the commission.
In return for fulfilling their obligations, the FCCPC withdrew pending criminal charges against BATN and at least one employee.
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