Appeal Court Imposes N15 Million Fine on MTN for Unsolicited Messages

The Court of Appeal in Abuja on Friday delivered a major ruling against MTN Nigeria Communications Limited, ordering the telecommunications giant to pay N15 million in damages.

This decision came as a result of MTN's persistent violation of customer privacy through the unauthorized deduction of airtime and the imposition of unsolicited services, including messages and callertunes.

The case was brought before the court by Ezugwu Emmanuel Anene, a public interest lawyer, who alleged that MTN had unlawfully deducted airtime from his account for services he never subscribed to.

Anene reported receiving over 244 unsolicited text messages from MTN, which included services like Weekly Guidance and Counseling. Despite activating the Do Not Disturb (DND) option and lodging complaints with MTN's customer care, the unwarranted deductions continued unabated.

The appellate court, in a unanimous decision by a three-member panel of Justices, found MTN's actions to be fraudulent and a breach of subscribers' rights under section 37 of the 1999 Constitution, as amended.

The court emphasized that the sending of unwarranted text messages and the auto-renewal of services not subscribed to amounted to a violation of Regulation 28 of Consumer Code of Practice Regulations.

Justice Okon Abang, delivering the judgment, noted that MTN's practices not only infringed on the right to privacy but also disrupted the quiet enjoyment of airtime purchased by customers.

The court opined that such actions were likely generating substantial profits for MTN, potentially enriching the company unlawfully if similar practices were applied to millions of unsuspecting Nigerians.

The judgment followed an appeal marked: CA/ABJ/CV/137/2022, which was initially ruled upon by the High Court of the Federal Capital Territory (FCT). The High Court had previously awarded N300,000 in general damages, but Anene, dissatisfied with the amount, sought redress at the Appeal Court.

MTN's legal team also cross-appealed, arguing that the total deductions from Anene's airtime amounted to about N14,000 and that the initial award was generous. However, the Appeal Court dismissed MTN's cross-appeal, stating it lacked merit.

In its ruling, the Appeal Court perpetually restrained MTN from sending unsolicited text messages or imposing callertunes and deductions on the claimant’s airtime. The court underlined the importance of protecting consumer rights and privacy, setting a precedent for other telecommunications companies operating in Nigeria.