The largest pay-TV provider in Africa, MultiChoice, has faced a severe penalty for contempt of court from a Nigerian consumer tribunal. The business has been mandated to provide its customers a complimentary month of pay-TV service. This decision was made on Friday in response to the discovery that MultiChoice had raised subscription costs by roughly 25% in May without giving adequate notice, which had left many customers unhappy.
The Competition and Consumer Protection Tribunal (CCPT) assessed the 150 million naira (about $107,142.86) punishment in response to a case filed in April by subscriber Festus Onifade, who questioned the sufficiency of MultiChoice’s eight-day notice before the rate increase. Concerns about consumer rights and ethical corporate practices were brought to light by Onifade’s legal action.
The tribunal’s ruling follows MultiChoice Nigeria’s disregard for an earlier order to stop the proposed price increase. The firm had first contested the tribunal’s authority over its pricing strategy and had moved forward with the rate adjustment in defiance of the standing order. The company offers services through its DSTV and GOTV platforms.
Under the direction of Justice Thomas Okosu, the tribunal reiterated its authority to hear cases involving consumer rights on Friday and denounced MultiChoice’s disobedience. The tribunal’s decision penalizes MultiChoice financially and requires the corporation to provide a complimentary month of service to its subscribers as a remedy.
It is still unknown whether MultiChoice’s legal team would appeal the ruling as of the most recent updates, and the corporation has not responded to demands for comment. Stakeholder anxiety and suspicion have continued as a result of this quiet. This verdict, which has an impact on millions of subscribers in the pay-TV sector, is a major declaration of consumer rights in Nigeria. The enforcement of these rights by the tribunal highlights the increasing significance of regulatory supervision in guaranteeing ethical business conduct and compliance with legal norms.
It is anticipated that this choice will have an impact that goes beyond MultiChoice’s immediate operational and financial concerns. It draws attention to how important legal frameworks are in defending consumer interests against unreasonable price increases and poor corporate information.
