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

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

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

Under the draft, any business 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 with the commission.

The draft creates a section on “Artificial Intelligence and Automated Marketing”. It says content generated by AI or automated systems must be clearly identified as such. It also covers AI chatbots, virtual influencers and automated messaging systems.

The proposed rules say the use of these tools must be transparent. They must not involve manipulation, misinformation or the exploitation of consumers’ data or behavioural tendencies. Businesses would also have to let consumers opt out of automated or AI-driven marketing messages.

On sanctions, the draft said a corporate body that breaches the regulations could face an administrative penalty of up to N100 million, or 1 per cent of its turnover in the previous year, whichever is higher.

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

The draft also provides that directors of an erring company may be proceeded against, and that such action may include disqualification from serving as a director for up to five years.

Separate penalties of up to N10 million are proposed for specific offences. These include failing to award a promised prize, failing to comply with the terms of a promotion, and making a false statement in an application or undertaking.

Liability for AI decisions

The draft makes businesses responsible for the messages, claims and representations produced by the AI or automated systems they deploy. It adds that liability would arise where such a system produces misleading, discriminatory or harmful promotional outcomes.

This means a company could not avoid blame for a misleading promotion by pointing to an automated tool as the source.

The proposal comes as Nigeria’s use of AI grows across sectors. In July, the chief executive officer of CarbonAI, Debola Ibiyode, warned that the country could lose the economic gains of AI if it fails to put strong regulatory safeguards in place. She said innovation without safeguards creates risks that could discourage investment.