The Federal Competition and Consumer Protection Commission (FCCPC) on Friday sealed Sahad Stores at Area 11 in Abuja, for allegedly short-changing customers through misleading price tags on their products.
However, the development has elicited concerns as the Founder of the Stanbic IBTC Bank, Mr. Atedo Peterside, on his verified X (formerly Twitter) handle wondered if the move would not scare investors.
According to Peterside, his question to “those on the federal government’s economic team was if sealing up of an Abuja store is: Are these types of moves not likely to frighten away investors (local and foreign)?”
The closure of Sahad Stores came amid efforts by the President Bola Tinubu–led administration to address factors currently contributing to food inflation as well as rising prices of other commodities.
The enforcement was led by the FCCPC acting Executive Vice-Chairman, Adamu Ahmed Abdullahi, who accused the supermarket of misleading pricing practices, charging customers prices that differed from those displayed on the shelves.
Citing the Council’s Establishment Act, he said the company risks a fine of over N100 million if proven to have contravened the laws while the directors of the company themselves are liable upon conviction payment of N10 million each or imprisonment of six months or both.
Abdullahi, reportedly stormed the stores at about 9:20a.m. with heavily armed security operatives and interrogated the price of some goods which were found to be different from the price on the system.
He, therefore, ordered the evacuation of all staff from the six-storey building, after an engagement with the representative of the stores’ management.
According to the FCCPC enforcement team, there were different prices on the same goods from the same manufacturer, while some goods from the same manufacturer but different brands had the same price tag on the shelf – whereas the prices in the computer system were different for the different brands.
The FCCPC boss insisted the store must first be sealed despite pleas from the management.
He insisted a verification exercise and strict monitoring should be conducted to ensure appropriate prices were displayed on all goods.
Abdullahi, told journalists that the commission’s preliminary investigation found evidence of the supermarket’s management shortchanging customers, adding that the store would remain sealed until further investigations are completed.
He said, “What we have found out that these people are doing is misleading pricing and lack of transparency in the pricing, which is against Section 115 (3) of the law that says a consumer is not required to pay a price for any good or service higher than the one that’s on display.
“Section 155 states that any corporate person that contravenes is liable to a fine of N100 million or even more and the directors of the company themselves are liable upon conviction payment of N10 million each or imprisonment of six months or both.
“What we have done today is to make sure that they comply with the law. We initially called them to come and defend themselves but failed to show up. In the long run, they sent a lawyer whom we asked if he was familiar with the facts of the case. He said he wasn’t.
“To unseal the store, they have to make sure that they do what is required to be done.”
Chuks Okocha and James Emejo
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