Legal Ruling: Multichoice Must Offer One Month Free DSTV, GOTV Service to Nigerians

Legal Ruling: Multichoice Must Offer One Month Free DSTV, GOTV Service to Nigerians

In a landmark decision, the Competition and Consumer Protection Tribunal has mandated Multichoice Nigeria to provide all Nigerian subscribers on the DSTV and GOTV platforms with one month of free subscription. The ruling, delivered on Friday, June 7th, also includes an N150 million fine for Multichoice for challenging the court’s jurisdiction and disobeying an interim order.

Court’s Decision and Background

The three-man panel, chaired by Justice Thomas Okosu, issued this verdict following numerous consumer complaints and a class-action lawsuit initiated by Barrister Festus Onifade. The lawsuit contested Multichoice’s decision to increase subscription fees without adequate notice, a move that had sparked widespread dissatisfaction among subscribers.

On April 24, 2024, Multichoice announced new price adjustments for its DSTV and GOTV packages, set to take effect on May 1, 2024. The email to subscribers cited rising business operation costs as the reason for the price hike. However, the tribunal had previously issued an interim order restraining Multichoice from implementing the new rates pending a full hearing.

Tribunal’s Findings

The tribunal found Multichoice guilty of disobeying the interim order by proceeding with the price increase. It also rejected Multichoice’s preliminary objection that argued the tribunal lacked jurisdiction over the case. Justice Okosu highlighted that the FCCPC Act grants the tribunal jurisdiction over all business activities within Nigeria aimed at profit-making, thus validating the tribunal’s authority in this matter.

Penalties and Directives

In addition to the free subscription month, the tribunal imposed a N150 million penalty on Multichoice for failing to comply with its interim orders. Justice Okosu emphasized that the company’s actions were condemnable and must not be tolerated.

The tribunal’s decision underscores the importance of consumer rights and corporate accountability. It also serves as a reminder to other service providers about the consequences of unfair business practices and the necessity of adhering to regulatory directives.

Multichoice’s Response and Implementation

Multichoice has stated that it is reviewing the court’s decision and will comply with the directive. The company is expected to announce details on how subscribers can avail themselves of the free subscription offer shortly. The court has mandated that Multichoice publicly communicate this offer to ensure all subscribers are informed.

Public Reaction

The ruling has been widely praised by Nigerian consumers and consumer rights advocates. Social media platforms have been abuzz with positive reactions, with many subscribers expressing relief and satisfaction at the court’s decision.

Looking Ahead

This ruling sets a significant precedent for consumer rights protection in Nigeria. It highlights the judiciary’s role in holding corporations accountable and ensuring that consumer interests are safeguarded. The decision also signals to service providers the need for fair pricing practices and quality customer service.