Impact of Consumer Protection Laws on the Production, Pricing, and Promotion of Food and Pharmaceutical Products in Benue State, Nigeria

Abstract

This study examines the impact of consumer protection laws on the production, pricing, and promotion of food and pharmaceutical products in Benue State, Nigeria. It evaluates the enforcement of the NAFDAC Act, Price Control Act, and Food, Drug, and Related Products Advertisement Regulations (2019) and their effectiveness in shaping market practices. Using a cross-sectional survey design, data were collected from 103 indigenous food and pharmaceutical distributors and marketers, and the Ordinary Least Squares (OLS) estimation technique was employed to test the hypotheses. The findings reveal a weak but statistically significant relationship between NAFDAC Act enforcement and production outcomes (R = 0.482, p < 0.05, R² = 0.232), suggesting that while the law influences quality control, other market factors play a greater role in determining production standards. The Price Control Act exhibited a moderate correlation with pricing (R = 0.615, p < 0.005, R² = 0.378), but outdated penalties and inconsistent enforcement limit its effectiveness. The strongest correlation was observed between Advertisement Regulations (2019) and marketing practices (R = 0.662, p < 0.005, R² = 0.438), reflecting improvements in advertising compliance but highlighting challenges in regulating digital promotions. The study underscores gaps in enforcement mechanisms, particularly in consumer awareness, compliance monitoring, and regulatory penalties. While consumer protection laws exist, inconsistent implementation and weak regulatory oversight hinder their full effectiveness. To address these challenges, the study recommends revising outdated legislation, introducing AI-driven price monitoring, enhancing digital regulatory oversight, and strengthening inter-agency collaboration. Additionally, public education campaigns and stricter penalties for violations are necessary to ensure fair market practices. Overall, consumer protection laws play a critical role in ensuring ethical business practices, fair pricing, and product safety, but regulatory loopholes and enforcement weaknesses must be addressed to enhance consumer safety and market stability.