FCCPC’s Compose AI Marketing Command Mulls N100m Penalty On Erring Businesses

It additionally covers AI chatbots, digital influencers and automated messaging systems.

The proposed rules tell the use of these tools must be transparent. It adds that liability would arise where such a framework produces misleading, discriminatory or harmful promotional outcomes.

This means a business could not steer clear of blame for a misleading promotion by pointing to an automated utility as the source.

The approach comes as Nigeria’s apply of AI grows across sectors. It says information generated by AI or automated systems must be plainly identified as such. In July, the director executive officer of CarbonAI, Debola Ibiyode, warned that the country could lose the economic gains of AI if it fails to put reliable regulatory safeguards in place. They must not include manipulation, misinformation or the exploitation of consumers’ statistics or behavioural tendencies. These contact for failing to award a promised prize, failing to comply together with the terms of a promotion, and making a incorrect observation in an application or undertaking.

Liability for AI decisions

The outline makes businesses responsible for the messages, claims and representations produced by the AI or automated systems they deploy. Businesses would additionally have to let consumers opt out of automated or AI-driven marketing messages.

On sanctions, the outline said a corporate body that breaches the regulations could confront an administrative penalty of up to N100 million, or 1 per cent of its turnover in the former year, whichever is increased.

A natural people who contravenes the regulations could be fined up to N50 million.

The compose additionally provides that directors of an erring enterprise may be proceeded against, and that such phase may address disqualification from serving as a director for up to five years.

Independent penalties of up to N10 million are proposed for particular offences.

The Federal Competition and Consumer Protection Commission (FCCPC) has proposed rules that would place businesses utilizing artificial intelligence (AI) in their marketing under tighter law, together with fines of up to N100 million for breaches.

The propose is contained in the prepare Sales Promotion Regulations, 2026, which the commission released on September 30, 2026.

Under the prepare, any enterprise that uses AI, machine learning or other automated technologies for sales promotions, marketing communications or consumer engagement aimed at Nigerian consumers would have to register that use including the commission.

The write creates a segment on “Artificial Intelligence and Automated Marketing”. She said innovation lacking safeguards creates risks that could discourage investment.

 

Source: FCCPC’s Draft AI Marketing Regulation Mulls N100m Penalty On Erring Businesses

Ali Yerima