The Federal Competition and Consumer Protection Commission (FCCPC) has proposed new regulations that would hold businesses accountable for marketing messages and promotional claims generated by artificial intelligence (AI). Under the draft Sales Promotion Regulations, 2026, corporate offenders could face administrative penalties of up to ₦100 million or 1% of their previous year’s turnover, whichever is greater.
The framework, released on September 30, 2026, targets AI, machine learning, and automated technologies used in promotions and consumer engagement directed at Nigerians. The provisions remain proposals, meaning the new requirements and penalties are not yet final enforcement rules.
Businesses to Register AI Marketing Use
Under the proposed framework, businesses deploying AI or automated technologies for marketing would be required to register their use with the FCCPC. AI-generated or automated promotional content would also need to be clearly identifiable, helping consumers understand when they are interacting with technology.
The provisions cover tools such as chatbots, virtual influencers, and automated messaging systems, which businesses increasingly use to advertise products, answer enquiries, and influence purchasing decisions. For companies using these tools, the proposal would introduce additional responsibilities around transparency and the accuracy of commercial messages.
Companies Remain Responsible for Misleading Claims
A central provision would keep responsibility for AI-generated representations with the businesses deploying the technology. Companies would therefore be unable to avoid accountability simply by arguing that an automated system produced a misleading claim, discriminatory recommendation, or harmful promotional message.
This could require businesses to strengthen human oversight of AI-generated adverts, product descriptions, and customer communications. The proposal addresses a growing challenge in digital commerce: determining who bears responsibility when automated tools generate inaccurate information or steer consumers towards decisions based on false claims.
Consumers to Get Opt-Out Rights
The draft also prioritises consumer control over automated marketing. Businesses using AI-driven communications would be expected to provide an option to opt out. Automated systems would also need to meet requirements against manipulation, misinformation, and the exploitation of consumer data or behavioural tendencies.
These provisions could affect how businesses design promotional campaigns, personalise recommendations, and communicate with customers through automated channels. Their introduction reflects the expanding use of AI across Nigeria’s marketing, customer service, and online retail sectors.
Proposed Penalties Extend Beyond Companies
Alongside the proposed corporate sanctions, individuals could face fines of up to ₦50 million. Additional penalties of up to ₦10 million are proposed for specified breaches, including failure to deliver promised promotional prizes and false statements in applications. The turnover-based provision means potential corporate penalties could exceed ₦100 million, depending on a company’s revenue and the applicable breach.
The proposal comes amid wider discussions about overlapping responsibilities for consumer protection, competition, data governance, and AI regulation. In July, the Federal Ministry of Communications, Innovation and Digital Economy directed regulators to maintain the regulatory status quo on internet platforms and other cross-cutting digital issues pending a harmonised national framework.
The FCCPC also began investigating allegations involving Meta, Google, X, and certain generative AI platforms, including alleged anti-competitive conduct and unauthorised use of Nigerian media content. It stressed that the investigation did not establish wrongdoing.
If adopted, the marketing rules could require businesses to review automated campaigns, strengthen disclosure practices, and demonstrate that their use of AI meets consumer-protection requirements. Human oversight would become particularly important where automated content makes commercial promises.
