FG probes consumer rights violations in Pay TV Industry
- Why we adjusted tariffs on DStv, GOtv -MultiChoice
Federal Competition and Consumer Protection Commission (FCCPC) said it has opened an investigation into the conduct of dominant Pay TV service providers, following credible information, public announcements by operators, and consumer perception analytics.
In a statement, the FCCPC said it has conducted an investigation, pursued legal action in court and secured an injunction pre-empting price increase.
The agency said it also entered specific orders regarding a provider, engaged in periodic surveillance and monitoring, and more recently inquired into a purported tax increase by at least one provider.
It also said the investigation was targeted at addressing the Commission’s concerns and publicly expressed consumer dissatisfaction with Pay TV services.
The scope of the inquiry includes questions about unfair dealings, unreasonable and manifestly unjust contract terms, abuse of market power, colourable pricing practices and other obnoxious or illegal conduct.
The Commission, however, enjoined operators to familiarise themselves with the FCCPA and its statutory clarifications of their obligations to the FCCPC under S.104 in addition to, and or irrespective of any obligations to other regulators.
The Commission assured that it will continue to pursue initiatives and efforts that promote and ensure fairness to all.
Meanwhile, MultiChoice has said its price adjustments on some DStv and GOtv packages from September 1, 2020, was done after careful consideration of the market and a review of its business operations.
In a statement, the firm said: “We have reviewed the prices of some of our bouquets so that we can continue to survive as a business and bring quality entertainment to our customers.”
It said it considered inflation rate at 12.82%, the highest in 27 months; content costs and efficiencies within the company.
“Please, be assured that we have worked hard to keep this year’s tariffs manageable,” said John Ugbe, CEO of Multichoice.
It said the packages will continue to be available at varying pricing points to allow subscribers flexibility in price and choice without compromising quality or variety.
