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'Regulators Must Protect Consumers, Economy Through Firm, Fair Regulations'
[September 11, 2014]

'Regulators Must Protect Consumers, Economy Through Firm, Fair Regulations'


(AllAfrica Via Acquire Media NewsEdge) Shina Loremikan has passion for consumer protection issues and is presently with the Consumer Rights Advocacy Network of Nigeria. In this interview with Business Editor, ADE OGIDAN,he tackles some of the important concerns of the consumer in Nigeria.



YOU have been on a campaign against pirate marketing in the alcoholic beverages industry, which involves two of the biggest players in the sector. What is your concern with this? Thank you very much. It's good that you observed that this act of pirate marketing involves two heavyweights in the alcoholic beverage industry, with one seeking to gain an edge over the other through unfair practices. Naturally, in marketing there is competition, particularly between or among those who offer a similar range of products and services, which cater to about the same needs or wants.

Every company is struggling to gain a larger market share and hence profits, but one should not seek to gain advantage over the competition through unscrupulous or underhand means. That definitely violates certain codes, principles and legislation that protect the marketing of goods and services in the country. All cannot be said to be fair in war, as even the Geneva Convention has clauses that seek to protect groups like prisoners and the weak during the physical acts of combat between nations. That is basically our concern.


We have a situation in which one of the two major breweries you referred to has embarked on a conscious and deliberate programme of de-marketing the other, which is its close competitor in the alcoholic beverages sector. This situation leaves me with no option but to describe the affected competitor as the 'assaulted brewery,' because of the perceived underhand method by which the aggressor brewery goes into meeting with major retail outlets across the country and inducing them with juicy incentives not to stock, display or sell the products of the assaulted brewery.

We reliably gathered that some of the incentives offered include branded promotional materials like refrigerators, coolers, seating sets, larger discounts on sales and regular supply of crates of free products. This becomes a concern for us because consumers are being manipulated and coerced into switching allegiance, out of necessity or availability, and made to patronise brands of beer and malt drinks that might not have ordinarily been their first choice. This is an unfair creation of artificial scarcity.

How did you get to know about this? The Consumer Rights Advocacy Network of Nigeria (CRANN) is a coalition of NGOs and civil society groups who have come together to monitor and intervene in trends relating to how consumers in Nigeria perceive or are satisfied with the goods/services being offered across board by corporate organisations and other levels of entrepreneurs. We came about as a result of a general climate of dissatisfaction with a lot of goods and services in Nigeria, and due to the observation that there is a general weakness in regulation that makes several organisations or entrepreneurs get away with the provision of bad products/services.

We operate through support for the activities of our different member organisations on consumer-based issues, and we also have an office where people can report incidences that infringe their rights as consumers. Once we receive genuine complaints, we take these up with the relevant organisations involved and seek redress.

We became aware of this issue of pirate marketing in the alcoholic beverages industry because many people complained to us in their capacity as consumers and potential consumers. Equally, a number of complaints came through our member organisations from various parts of Nigeria.

Can you expatiate on how this has become an issue for consumer rights advocacy? Essentially, within most marketing spaces, the sanctity of the consumer's ability to choose from a range or variety of products is usually guaranteed and protected by legislation. The consumers' space for choice should ordinarily be expansive and protected, and most organisations offering goods and services are generally aware of this, which is why we have fair competition and anti-competitiveness laws in our legal books in Nigeria. However, it becomes insidious when a corporate organisation endeavours at de-marketing its competition by offering those manning the distribution channels incentives as a way of monopolising the market and earning more revenue at the expense of competition.

It is like turning marketing into a crude war strategy, instead of a refined strategy that promotes products, grows their brand identity, and ensures their success within a context of fairness. Our position is that even if our hardworking marketers of products have hard-pressing targets, they must still strive to win by fair means.

We strongly believe this to be highly unethical, as it narrows the space for choice in what ought to be an open and free market place. Why should the consumer be forced to compromise his or her choice and patronise only what is available? For us at CRANN, unethical marketing practices leaves the consumer unsatisfied and short-changed, and is a corporate crime that needs to be addressed in very strong terms. It must be stopped to allow for the growth and development of the alcoholic beverages sector and the Nigerian economy, and as a way of ensuring investor confidence in our country.

Does this sort of marketing portend negative consequence for the national economy in any way? Certainly! Anti-competitive marketing always has very negative consequences for any economy that falls victim to it because it kills competition and entrenches monopoly. This is bad for sectoral growth and development, while also jeopardising the livelihoods, incomes and tax-paying capacities of the numerous people who are part of the income-chain tied to the other levels of the competition, which is the alcoholic beverage industry in this case. Sadly, it is this sector today, but it might be another one tomorrow, as people, including marketers are always looking out to replicate models that appear to work, whether it is ethical or not.

So, how do you think that this situation can be resolved and justice granted to the organisation you refer to as the 'assaulted brewery'? This is clearly a case for regulation, signifying a playing ground that is not level, where the underhand practices of certain organisations are not sanctioned or penalised. There is need for fairness in marketing practices, predicated on allowing industry players in the sector freedom to operate on a level ground, according to the same rules and on equal terms, while guaranteeing appropriate and unbiased regulation by concerned agencies.

This necessitates firm, fair, acceptable and impartial regulation as a way of checking the tendency of corporate bodies to act in unethical and unscrupulous ways. Only efficient institutions promote growth and development in the economy, and the country as a whole.

This is why the CRANN is urgently and strongly calling on all the relevant agencies of government, including the Consumer Protection Council of Nigeria (CPC) and the National Competitiveness Council of Nigeria to rise to the challenge of ensuring an even playing field for all players in the alcoholic beverages sector. In as much as organisations have the ultimate goal of making profit, we believe every consumer has the right to choose a preferred brand of beverage, according to his or her taste and inclination. Every brand has the right to be available to its consumers and compete within the same space, as far as the appropriate regulations allow.

We cannot afford to seat back and watch the free space that the consumer has for choice to be continually attacked and reduced by anti-competitive marketing practices. This is dangerous to our freedoms, livelihoods and economy, generally, in Nigeria.

Copyright The Guardian. Distributed by AllAfrica Global Media (allAfrica.com).

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