In this special feature arising from the ruling of the Consumer Protection Tribunal, on Friday, Korede Abdullah analyzes the implication of the decision
N150 million Fine
Various sections of Nigerians have continued to show their reactions to the decision of Consumer Protection Tribunal (CCPT) which imposed a fine of 150 million naira ($107,142.86) on Multichoice Nigeria for defying a court order on subscription rate increases. They described it as a welcome development and a big sigh of relief.
Three-Man Panel
The tribunal was a three-man panel, chaired by Justice Thomas Okosu who also delivered the judgement on Friday. The tribunal also ordered Multichoice to provide one-month free subscription on its DStv and GOtv platforms to its Nigerian customers.
Multichoice
Multichoice, which has been operating DSTV and GOTV in Nigeria for more than two decades recently increased its subscription rates by 25%, causing it big backlash among its customers. This was followed by a subscriber lawsuit in April.
Bone of Contention
The bone of contention in the suit was that the eight-day notice for the hike was insufficient. After the argument by the plaintiff, the CCPT ordered Multichoice to stop the price increase, but the firm proceeded in total disregard of the order.
Justice Okosu’s ruling laid emphasis on the importance of adhering to court directives which resulted in the fine and mandated one month of free service for subscribers.
Thomas Okosu held that Section 39(2) of the FCCPC Act states that the tribunal shall have jurisdiction throughout the federation and on all commercial activities aimed at making a profit.
In spite of the Multichoice’s challenge of the tribunal’s jurisdiction, it did not exempt them from consequences of the ruling, thereby setting a significant precedent for consumer protection in Nigeria’s pay-TV sector.
“The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu held.
“I have come to the conclusion that this tribunal has the jurisdiction to preside over consumer rights as in the instant case and I resolve this issue against Multichoice,” the judge continued.
A lawyer, Festus Onifade, had initiated the suit against Multichoice after it announced increment of subscription rates on its DStv and GOtv packages from May 1, 2024.
Reactions
Among those to Africa Health Report on the tribunal ruling was Mr Wale Zubair, a teacher who said the ruling had reinforced the Nigerian judiciary’s commitment to consumer rights, potentially setting a legal benchmark for other service industries.
The ruling has solidified the ongoing struggle between service providers and regulatory bodies to ensure fair consumer practices, which could lead to more stringent regulations and enforcement strategies.
Refusal of Multichoice to disobey the court order is tantamount to contempt of court which is considered an affront to the authority and dignity of the court. No wonder, the tribunal wielded its big stick against the company.
MultiChoice has said it would appeal the ruling.
Meanwhile, Nigerians are waiting and watching for the ‘free subscription’ to happen.
