Court Upholds FCCPC’s Investigative Powers in Airline Ticket Pricing Disputes
The Federal High Court in Abuja has definitively affirmed the Federal Competition and Consumer Protection Commission’s (FCCPC) authority to investigate consumer complaints regarding airline ticket pricing. This landmark ruling, delivered on June 29 by Justice B.F.M. Nyako, dismisses a legal challenge brought by Air Peace, reinforcing the commission’s mandate to probe alleged sharp increases in domestic airfares.
The court’s judgement clarifies that the FCCPC’s investigative powers, as outlined in the Federal Competition and Consumer Protection Act (FCCPA) 2018, are distinct from its price regulation functions. Seeking information in response to consumer grievances, the court held, does not constitute price control. This decision marks the second judicial setback for Air Peace in its contention with the consumer protection agency. Earlier, in April, Justice James Omotosho had similarly dismissed a suit by the airline, deeming its argument that the FCCPC lacked the power to investigate or issue summons as unreasonable.
The current legal dispute originated from the FCCPC’s January 2025 request for information, prompted by passenger complaints about significant fare hikes on certain domestic routes during the 2024 Christmas period. Air Peace had contended that the FCCPC could only investigate airfare pricing if the President first invoked specific price regulation provisions (Sections 88-90) of the FCCPA. The airline sought court orders to prevent the commission from proceeding with its inquiry.
Justice Nyako, however, rejected this interpretation, asserting that the FCCPC lawfully exercised its investigative powers under Sections 17, 32, and 33 of the Act. The court found that requesting information was a legitimate fact-finding process, not an attempt to fix fares, prescribe pricing formulas, compel fare reductions, or declare ticket prices unlawful. The ruling emphasised that accepting Air Peace’s argument would cripple the FCCPC’s ability to investigate pricing complaints, undermining its statutory mandate and legislative intent.
Reacting to the judgement, FCCPC Executive Vice Chairman/Chief Executive, Mr. Tunji Bello, hailed the ruling as a crucial judicial affirmation of the commission’s responsibility to investigate market conduct when there are grounds to suspect adverse effects on consumers or competition. He underscored the clear distinction drawn by the court between investigation and price regulation. In a statement issued by FCCPC Director of Corporate Affairs, Mr. Ondaje ljagwu, Bello clarified that the commission’s action was solely to obtain information concerning a legitimate consumer concern, not to regulate fares. He stressed that investigations are fact-finding exercises and should not be misconstrued as findings of liability or enforcement actions. This judgement provides essential clarity on the scope of the FCCPC’s investigative powers, reaffirming that statutory price regulation operates under a separate legal framework. Bello reiterated the commission’s commitment to fulfilling its statutory duties with fairness, transparency, and adherence to the rule of law.
