ARCON Cracks Down on Deceptive Ads After CBEX Scam, DG Warns Against Unapproved Content

Nigeria’s advertising watchdog is sounding a stern warning to advertisers, agencies, and media owners across all platforms, vowing to aggressively combat deceptive advertising practices following a landmark court judgment affirming its broad regulatory powers. The Advertising Regulatory Council of Nigeria (ARCON) highlighted the devastating impact of schemes like the recent CBEX ponzi scheme, which it says was fueled by misleading and unverified advertising.

The warning comes after the Federal High Court in Lagos delivered a judgment in Suit No. FHC/L/CS/1262/2024, unequivocally stating ARCON’s statutory authority to regulate advertising and marketing communications across traditional and new media, including print, broadcast, out-of-home, digital, and significantly, social media platforms.

ARCON Director-General, Dr. Olalekan Fadolapo, stated in a public statement, “This judgment is not just a legal affirmation of ARCON’s mandate – it is a critical reinforcement of our responsibility to protect the Nigerian public from harmful, deceptive, and unethical advertising practices.”

Dr. Fadolapo expressed deep concern about the rising tide of misleading advertising, particularly within the digital space, which he says preys on public trust and leaves consumers vulnerable to significant financial and emotional harm. He pointed to the CBEX ponzi scheme as a stark example of this danger.

“One recent and painful example is the CBEX ponzi scheme, which was aggressively promoted through misleading and unverified advertising claims,” Dr. Fadolapo said. “This scheme lured thousands of Nigerians with false promises of guaranteed returns, only for many to lose their hard-earned money to fraudulent operators. Such tragedies show the importance of vetting advertising materials for honesty, transparency, and compliance with ethical standards before dissemination.”

ARCON reiterated that all advertising activities in Nigeria, regardless of the platform, are subject to the ARCON Act and require prior vetting and approval from the council before being made public. This includes advertisements on television, radio, billboards, newspapers, social media platforms like Instagram, Facebook, X (formerly Twitter), and TikTok, and any other channel.

Dr. Fadolapo made it clear that the regulatory body will not tolerate advertisements that misrepresent facts, omit critical information, or are designed to exploit vulnerable audiences. “Let it be made unequivocally clear: ARCON will have its eyes on every platform, and we will no longer condone a culture where advertisers or agencies deliberately mislead the public to serve personal or commercial interests,” he warned.

The ARCON DG emphasized that the court judgment confirms that social media is not an unregulated space and that influencers and content creators promoting products or services are also required to obtain prior approval for their advertisements. Failing to do so, he stated, constitutes a violation of ARCON’s regulations and will lead to investigation and potential referral to the Advertising Offences Tribunal, which can impose fines and other penalties.

Dr. Fadolapo underscored the importance of protecting Nigerian consumers, stating, “The responsibility of protecting Nigerian consumers from false, misleading, and harmful advertising is one that ARCON takes seriously.” He urged stakeholders to remember their duty to the public whose trust they rely on.

In response to the growing challenge, ARCON is strengthening its monitoring and enforcement mechanisms, including the establishment of a special compliance task force to track and flag non-compliant advertising across all platforms. The public is also encouraged to report any suspicious or deceptive advertisements.

“As we continue to work towards building a more ethical, professional, and consumer-protective advertising environment in Nigeria, we call on all stakeholders to recommit to the principles of truth, fairness, and responsibility,” Dr. Fadolapo concluded. “The era of lawless advertising is over. Let all those who are involved in the business of persuasion know: ARCON is watching, and the law will be enforced.”