FCCPC moves to regulate AI marketing, businesses face N100 million penalty

The Federal Competition and Consumer Protection Commission (FCCPC) is drafting new regulations aimed at overseeing the use of artificial intelligence (AI), machine learning, and automated technologies for marketing purposes in Nigeria. The proposed Sales Promotion Regulations, 2026, would require businesses utilizing AI in sales promotions, marketing communications, or consumer engagement with Nigerian consumers to register with the Commission.

The framework, unveiled on September 30, 2026, includes stricter penalties for non-compliance, with fines reaching N100 million or 1% of the previous year's turnover for corporate entities, whichever is higher.

The proposed rules emphasize transparency in AI-driven marketing, prohibiting manipulation, misinformation, and exploitation of consumer data or behavioral tendencies. Businesses would be obligated to enable consumers to opt out of automated or AI-driven marketing communications. The draft also outlines additional penalties of up to N10 million for specific violations, such as failing to award promised prizes or adhering to promotion terms.

For instance, a false statement in an application or undertaking could result in a N10 million penalty.

Under the proposed framework, businesses deploying AI-generated marketing messages and claims would bear full responsibility and accountability for the content produced by these systems. This means that attributing misleading, discriminatory, or harmful promotional outcomes to an automated system would not absolve the business of liability.

The FCCPC's proposal represents the initial step in regulating AI use in Nigeria as the technology continues to proliferate across various sectors, promising economic benefits but necessitating responsible governance frameworks.