The Federal Competition and Consumer Protection Commission has imposed a fine of $110 million on British American Tobacco and its associated companies.
This penalty is related to purported violations of the Federal Competition and Consumer Protection Act, National Tobacco Control Act, and various legal statutes, as outlined in a statement released by the FCCPC on Wednesday.
Moreover, the commission has mandated BAT to undergo 24 months of compliance monitoring, engage in compulsory public health and tobacco control advocacy, and provide written assurances to the commission.
“In exchange for BAT Parties fulfilling their obligations under the Consent Order, the commission withdrew pending criminal charges against BATN and at least one employee with respect to obstructing the commission by attempting to prevent execution of the search warrant and initial lack of cooperation/compliance with steps in the investigation,” the commission said.The FCCPC said the decision followed its “active” investigation into British American Tobacco Nigeria Limited and other affiliated companies (BAT Parties) on August 28, 2020, after it received credible pieces of information and intelligence.
Commenting on the resolution, it said, “During the year ending 2023, the Federal Competition and Consumer Protection Commission came to a final resolution with British American Tobacco (Nigeria) Limited (BATN, British American Tobacco Marketing (Nigeria) Limited (BATMN), British American Tobacco Plc, British American Tobacco (Holdings) Limited (all together referred to as BAT Parties) with respect to a range of infringements of the Federal Competition and Consumer Protection Act, National Tobacco Control Act and sundry legal instruments.”
As per the commission’s statement, it executed an authorized order and warrant for search and seizure, sanctioned by a Federal High Court, at both BAT premises and a service provider’s location on January 25, 2021.
The commission revealed that it amassed substantial evidence through forensic analysis of electronic communications and other data obtained during the search, alongside evidence sourced from legitimate channels before and after the search.
Additionally, further investigation, including hearings, sworn testimonies, and ongoing analysis of evidence, identified multiple breaches of the FCCPA and related laws.
Emphasizing the cooperative relationship between the commission and BAT Parties during the investigation, it was noted that BAT Parties formally requested cooperation under the Commission’s Cooperation/Assistance Rules & Procedure, 2021, which may offer benefits such as potential reduced fines, waiver of certain regulatory penalties, and prosecutorial discretion (subject to compliance with specific rules).
The FCCPC clarified that its imposed penalties were carefully determined after reviewing the entire record, additional representations, and correspondence from BAT Parties.
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