British American Tobacco Nigeria (BATN) Limited and associated entities have been hit with a $110 million fine by the Federal Competition and Consumer Protection Commission (FCCPC) for allegedly breaking pertinent laws.
According to the FCCPC, the fine was a component of the agreement that was made between the business, its stakeholders, and the commission following an examination of potential infractions of the FCCPC Act of 2018 and pertinent tobacco control laws, rules, and guidelines.
The FCCPC announced in a statement signed by Babatunde Irukera, Chief Executive Officer, that it initiated an ongoing investigation into the corporation and its affiliates, also referred to as BAT parties, on August 28, 2020, based on their “contentment that a number of reliable bits of information and intelligence could be used to take further, more thorough investigations into specific behaviors, for, by, and on behalf of BAT Parties.”
“The court issued an order and warrant of search and seizure upon satisfying the Federal High Court that there was probable cause and sufficient evidence to exercise advanced statutory regulatory/investigatory tools.”On January 25, 2021, the commission carried out simultaneous and contemporaneous searches and seizures at the locations of several BAT parties as well as a service provider in furtherance of the order and warrant.Significant evidence from forensic examination of electronic communications and other information/data collected during the search, together with further evidence acquired during, and were all gathered, received, and procured by the commission.
following the investigation from additional reliable sources.
Proffers, hearings, transcripts of sworn testimony, and ongoing examination of the material “established and supported multiple violations of the FCCPA and other enactments,” according to the statement describing the additional inquiry.
The commission further observed that the corporation requested in writing the commission’s participation under the participation/Assistance Rules and Procedure, 2021, CARP, and that the commission accepted this cooperation during the inquiry and in promotion of mutual engagements with BAT parties.
Benefits like potential reduced monetary penalties (rule 4.1), waiver of the Commission’s Administrative Penalties Regulations 2020 (rule 4.2), and prosecutorial discretion, specifically rules 5.1 and 5.3 (subject to compliance with Rules 3 and 5.4), are all provided by the Cooperation/Assistance Framework (CAF).
“After carefully examining the record, the additional statements, representations, and correspondence from the BAT parties; the entirety of the evidence gathered; the legal infractions; the BAT Parties’ involvement in, and behavior in cooperation and assistance under, the Commission’s CAF,” By mutually signing a Consent Order and Notice, the Commission and BAT Parties ended the investigation, with both parties concurring that:
“That under Sections 155 of the FCCPA, Clause 11 of the Federal Competition and Consumer Protection Commission’s Administrative Penalties Regulations, 2020, and Clause 4.2 of the Federal Competition and Consumer Protection Commission’s Investigative Cooperation/Assistance Rules and Procedures, 2021, the BAT Parties shall pay a penalty of $110,000,000 (One Hundred and Ten Million Dollars);”
The Commission will oversee the BAT Parties’ compliance and monitoring for a full year in order to make sure that the parties modify their business practices and behaviors in a way that aligns with current laws and regulations pertaining to competition and tobacco control.
“BAT parties shall provide written assurances to the commission pursuant to Section 153 of the FCCPA as required,” the statement stated. “Mandatory public health and tobacco control advocacy in a manner compliant with tobacco control legislation and regulations, and satisfactory to the Commission as mitigation to evidence of a pattern of undermining, and circumventing national tobacco control policies and regulations.”