The Government Fines British-American Tobacco $110m
The Federal Government has taken action against British American Tobacco (BAT) and its affiliate companies. They have been fined $110m for breaking laws related to competition, consumer protection, and tobacco control. The Federal Competition and Consumer Protection Commission (FCCPC) made this announcement on Wednesday.
The Consequences
In addition to the fine, the FCCPC has imposed certain conditions on BAT. They must comply with these conditions for the next 24 months. This includes monitoring their activities, promoting public health and tobacco control, and providing written assurances to the commission.
The FCCPC has also decided to drop the criminal charges against BAT and one of its employees. This is because BAT has agreed to fulfill its obligations under the Consent Order. Initially, BAT had obstructed the commission’s investigation and did not cooperate. However, they have now taken steps to rectify this.
The Investigation
The FCCPC launched an investigation into British American Tobacco Nigeria Limited and its affiliated companies on August 28, 2020. This was based on credible information and intelligence they received. The investigation was thorough and active.
The Resolution
The FCCPC reached a final resolution with BAT Parties, which include BATN, BATMN, British American Tobacco Plc, and British American Tobacco (Holdings) Limited. This resolution addresses various infringements of laws related to competition, consumer protection, and tobacco control. The resolution will be in effect until the year 2023.
The Search and Seizure
To gather evidence, the FCCPC obtained a court order to search BAT locations and a service provider’s location on January 25, 2021. During this search, they collected substantial evidence, including electronic communications and other information. They also obtained additional evidence from legitimate sources.
Cooperation with BAT Parties
During the investigation, BAT Parties sought cooperation with the commission. They followed the Commission’s Cooperation/Assistance Rules & Procedure, 2021. The commission accepted their request for cooperation, leading to a resolution.
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