Exploitative Air Fares: FCCPC Opens Investigation Into Airlines’ Pricing Template

Following public inquiries, the Federal Competition and Consumer Protection Commission (FCCPC) on Friday announced an expansion of the scope of existing investigation into pricing templates behind rates charged for tickets by some airlines on some domestic routes with a view to establishing possible violations of the provisions of the law.

Concerns have been expressed widely in the past few days over what appears to be coordinated manipulation or exploitation in the pricing of airline tickets by some airlines on certain routes, especially in the South-East and South-South, as the festive season begins.

The ongoing investigation targets operators on the identified routes.

Earlier in the year, a major airline, Air Peace, instituted a court action seeking to restrain the Commission from examining its pricing mechanisms, following the commencement of an investigation into its pricing model after widespread complaints from members of the public.

The Commission said the ongoing inquiry is without prejudice to the case instituted against it by Air Peace.

Further clarifying the Commission’s position, FCCPC Executive Vice Chairman/CEO, Mr Tunji Bello, stated that, “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.”

The EVC/CEO emphasised that the Commission will not hesitate to act where evidence shows that consumer welfare or market competitiveness is being undermined.

Section 17(b) of the FCCPA empowers the Commission to monitor economic activities in Nigeria to identify anti-competitive, anti-consumer protection and restrictive practices that may adversely affect consumers.

Section 17(e) enables the Commission to carry out investigations considered necessary.

Although the Commission is not a price control body, fair pricing is a core objective of the FCCPA.

The Act establishes a comprehensive framework that protects consumers from excessive, opaque, misleading, or collusive pricing practices while promoting competitive markets that deliver products and services at prices determined through fair market dynamics.

Given the arbitrary spike in airfares, the Commission said it is extending its review of pricing patterns, the basis for the increases reported by consumers, and any practices that could undermine fair competition.

Where evidence confirms a breach of the Act, FCCPC said it will apply appropriate enforcement measures.

The Commission said it will provide further updates on the ongoing aviation investigation in due course.

Exploitative Air Fares: FCCPC Opens Investigation Into Airlines’ Pricing Template is first published on The Whistler Newspaper