The Federal High Court has clarified ARCON’s powers over advertising on social media. In Suit No. FHC/L/CS/1262/2024, the court ruled that ARCON can regulate online ads, but it cannot directly impose fines on companies. The court emphasized that the Advertising Offences Tribunal handles all financial penalties.
What Happened
Digi Bay Ltd (Betway Nigeria) challenged ARCON after the regulator issued a Notice of Violation demanding ₦1,000,000 per Instagram post. ARCON argued that the ads went live without prior approval from its Standards Panel. The plaintiffs claimed ARCON overstepped its authority and asked the court to nullify the fine.
Legal Basis
The court based its decision on the ARCON Act 2022, which gives ARCON authority to regulate advertising but assigns the power to impose fines to the Advertising Offences Tribunal. The judge also referenced Section 45 of the Nigerian Constitution, allowing reasonable restrictions on fundamental rights to protect the public.
Key Takeaways
- ARCON Can Regulate Ads
- ARCON can monitor all advertising, including social media posts.
- The court clarified that what matters is the activity of advertising, not whether the person posting is a registered advertising practitioner.
- Fines Require Tribunal Approval
- ARCON cannot directly levy financial penalties.
- Companies may still face fines if the Tribunal convicts them after proper proceedings.
- Social Media Isn’t Exempt
- The court treated platforms like Instagram as public spaces for broadcasting ads.
- Marketers must ensure content is vetted and approved before posting.
- Freedom of Expression Balanced with Protection
- The court recognized marketers’ right to communicate but held that regulating ads protects consumers from misleading or unsafe content.
Implications for Marketers
Brands and agencies now know the limits and scope of ARCON’s power. They must build compliance checks into campaigns and submit content for pre-publication approval to avoid Tribunal proceedings. The ruling provides clarity for digital marketing while reminding companies to respect Nigeria’s advertising laws.
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