FCCPC’s Proposed Sales Promotion Regulations

The Federal Competition and Consumer Protection Commission (FCCPC) recently published the Draft Sales Promotion (Amended) Regulations, 2026, for stakeholder consultation. The proposed Regulations seek to amend the Consumer Protection (Sales Promotions) Regulations, 2005, and introduce new registration, approval and compliance requirements for businesses conducting sales promotions in Nigeria.

The proposed FCCPC Sales Promotion Regulations introduce a registration and approval framework for sales promotions. Of particular concern is the requirement that every undertaking register each sales promotion with the FCCPC before its public announcement or commencement.

The proposed FCCPC Sales Promotion Regulations define a sales promotion as any promotional scheme or campaign through which prizes, gifts, refunds, rebates or other incentives, including prize draws, competitions, lotteries, gift-with-purchase offers, instant-win promotions and premium offers, are made available to consumers in connection with the patronage of goods or services or participation in an activity.

The scope of the proposed framework is, however, considerably broader than traditional prize-based promotions. The definition of “promotional activities” extends to any act, campaign, advertisement, communication or engagement undertaken to induce, encourage or reward consumer participation in connection with the sale, purchase or advertisement of goods or services. Similarly, “promotional materials” encompasses advertisements, notices, digital content, publications and other communications issued or authorised for the purpose of publicising or conducting a sales promotion.

The proposed FCCPC Sales Promotion Regulations also introduce provisions addressing digital promotions, influencer and affiliate marketing, and the use of artificial intelligence and automated marketing systems. In particular, Regulation 36 contemplates registration with the FCCPC by undertakings deploying artificial intelligence, machine learning or automated technologies for sales promotions, marketing communications or consumer engagement activities.

All undertakings that deploy, operate, or utilize artificial intelligence (AI), machine learning systems, or automated technologies for the purpose of conducting, managing, or disseminating sales promotions, marketing communications, or consumer engagement activities directed at or accessible to consumers in Nigeria are required to register same with the Commission.

Comments

While the FCCPC has a statutory responsibility to protect consumers against fraudulent, misleading and deceptive promotional practices, the proposed FCCPC Sales Promotion Regulations raise important questions about the scope of that responsibility and the limits of the Commission’s delegated legislative powers.

First, the breadth of the definitions creates uncertainty about the activities that will trigger registration. If promotional activities include virtually any advertising campaign, communication or engagement intended to encourage consumer participation in connection with the sale or advertisement of goods and services, the distinction between an ordinary marketing campaign and a registrable sales promotion becomes considerably blurred. Businesses may consequently find themselves having to seek regulatory approval for activities that are essentially ordinary commercial advertising.

Second, the proposed framework creates an additional compliance burden for businesses. Requiring each sales promotion to undergo a prior registration process, accompanied by prescribed fees and supporting documentation, introduces additional costs and administrative requirements into routine commercial activities. The requirement could also affect the speed with which businesses respond to market opportunities, particularly where promotions are time-sensitive or form part of wider marketing campaigns.

Third, the proposed FCCPC Sales Promotion Regulations raise questions about regulatory overlap. The Advertising Regulatory Council of Nigeria (ARCON), established under the ARCON Act 2022, is the statutory regulator of advertising and marketing communications in Nigeria. Its mandate includes establishing and enforcing advertising standards and protecting the public and consumers in relation to advertising practices. The Nigerian Code of Advertising Practice also expressly addresses sales promotions. The FCCPC’s proposed framework therefore creates a potential overlap between two regulatory regimes, with businesses potentially having to satisfy separate regulatory requirements in respect of the same promotional campaign.

There is also a question about the extent to which the FCCPC’s powers under the Federal Competition and Consumer Protection Act, 2018, support the introduction of some of the proposed requirements.

The potential consequences of FCCPC Sales Promotion Regulations are not merely theoretical. If the final Regulations retain their present breadth, their validity may become the subject of judicial scrutiny, particularly in relation to the scope of the FCCPC’s statutory authority and the limits of its delegated legislative powers.