Nullify ‘Offensive’ ARCON Act Provisions, Publisher Urges Court

Realhouse Communications Limited, the publisher of Castles Lifestyle and Highbrow Living magazines, has urged the Federal High Court in Lagos to nullify certain provisions of the ARCON Act, 2022, aleging they violate the rights to fair hearing and freedom of expression.

The media house, which made the request in a fundamental rights enforcement suit, is seeking judicial review of sections 37 and 54 of the ARCON Act and a declaration that they are null and void.

The applicant is asking the court to declare whether Sections 37 and 54 of the ARCON Act violate its fundamental rights to fair hearing (Section 36) and freedom of expression (Section 39) under the 1999 Constitution of the Federal Republic of Nigeria.

The company argues that, Section 54 of the ARCON Act, which mandates that any advertisement targeting the Nigerian market must receive prior vetting and approval from the Advertising Standards Panel, directly curtails freedom of expression and the press.

It further submitted that Section 37(5) of the same Act prescribes severe penalties for this alleged offence, including a fine of at least N500,000 or one year’s imprisonment for individuals, and a fine of at least N1,000,000 for organisations.

A key aspect of the suit stems from a Notice of Violation dated September 28, 2023, with reference ARCON/VOL1/2023/CASTLES LIFESTYLE MAGAZINE/9.

In this notice, ARCON claimed that the magazine violated advertising rules and demanded a fine of N500,000 for the alleged infraction.

Realhouse Communications, through an affidavit from its accountant, Liasu Kazzim Olawale, asserted that it was never represented before a panel, court, or tribunal before being deemed guilty and fined for the alleged offence.

This, they argue, constitutes a direct denial of their right to a fair hearing as enshrined in the 1999 Constitution.

Beyond seeking constitutional declarations, Realhouse Communications is also pursuing damages, a public apology, and a perpetual injunction against ARCON.

The Applicant is seeking an order compelling ARCON to publicly apologise to Realhouse Communications for the harassment and embarrassment caused.

It is also asking, “An order of perpetual injunction restraining ARCON from further interfering with the Applicant’s business by issuing notices of violation or fines to the Applicant’s customers.

“An order for N50,000,000 (Fifty Million Naira) as general damages.

“Realhouse Communications argues that a particularly damaging aspect of ARCON’s regulatory actions is the issuance of similar Notices of Violation directly to its clients and subscribers to Castles Lifestyle and Highbrow Living magazines.

“Attached exhibits, including notices issued to firms such as Terra Developers, Megamound Investment LTD, and Urag Real Estate, show ARCON imposing a violation fee of N1,000,000 (One Million Naira) per infraction for exposing ‘unapproved advertisements’ on the magazine’s platform.

“These notices cited Section 54 of the ARCON Act as the basis for the alleged violation, mandating an immediate cessation of the advertisements and payment within seven days.

“Realhouse Communications contends that ARCON’s actions have negatively impacted the confidence and trust of its clients, posing a substantial risk to its business.

“The affidavit states that unless restrained by the court, ARCON will continue to interfere with the Applicant’s business by sending wrongful notices to its clients.”

ARCON is yet to file its response to the suit.