A major legal showdown is currently underway in Nigeria’s media and advertising industry as Realhouse Communications Limited, publishers of the prominent Castles Lifestyle and Highbrow Living magazines, has dragged the Advertising Regulatory Council of Nigeria (ARCON) before the Federal High Court in Lagos.
The lawsuit, an originating summons filed by the company, seeks the enforcement of its fundamental human rights, arguing that certain provisions of the ARCON Act, 2022, violate its constitutional rights to a fair hearing and freedom of expression.
The publisher is demanding an award of N50 million as general damages for the alleged infringement.
At the heart of the legal challenge are Sections 37 and 54 of the ARCON Act, 2022.
Realhouse Communications contended that these sections unconstitutionally empower ARCON to impose sanctions and fines on media and advertising practitioners and their clients without granting them due process or a prior hearing.
The company is asking the court to declare these two key sections “null, void, and unconstitutional.”
The legal action stems from a series of violation notices and fines issued by ARCON, not only to Realhouse Communications but also significantly to several of its clients who advertise in the magazines.
According to the Applicant, ARCON’s conduct, specifically the imposition of fines without first conducting a trial or hearing, amounts to a gross infringement of its constitutional right to a fair hearing, a right explicitly guaranteed under Section 36 of the 1999 Constitution of the Federal Republic of Nigeria (as amended).
In its prayers, Realhouse Communications is challenging the court to determine whether the provisions of Sections 37 and 54 of the ARCON Act infringe on its rights to fair hearing and freedom of expression, as enshrined in Sections 36 and 39 of the Constitution, respectively.
The company is further seeking a declaration that it is not bound by Section 54, which criminalises the publication of any advertisement targeting the Nigerian market without prior vetting and approval by the Advertising Standards Panel.
The publisher argued that this provision directly undermines the freedom of expression and press guaranteed to it under Nigerian law.
In its supporting affidavit, the publishing house drew attention to the severity of the Act's penalties, noting that Section 37(5) prescribes a minimum fine of N500,000 or one year’s imprisonment for individuals, and at least N1,000,000 for organisations that fail to comply with the vetting requirement.
The immediate trigger for the lawsuit was a Notice of Violation dated September 28, 2023, with reference number ARCON/VOL1/2023/CASTLES LIFESTYLE MAGAZINE/9.
In this notice, ARCON accused Castles Lifestyle of breaching advertising rules and demanded an immediate fine of N500,000.
The company’s accountant, Mr Liasu Kazzim Olawale, deposed in the affidavit that the publisher was “never invited to appear before any panel, tribunal, or court before being found guilty and fined.”
This, he argued, was a blatant violation of its right to a fair hearing and administrative justice.
Beyond seeking the constitutional declarations, Realhouse Communications is pursuing substantial monetary damages and a restraining order against ARCON's continuing regulatory actions.
Among the specific reliefs sought by the company are: a declaration that the imposition of the N500,000 fine amounts to a denial of fair hearing; an order compelling ARCON to issue a public apology for the alleged harassment and embarrassment; and an order of perpetual injunction restraining ARCON from any further interference with its business or issuing violation notices to its clients.
Crucially, the company seeks an award of N50 million as general damages.
The publisher further alleged that ARCON’s regulatory clampdown has extended directly to its clients, a move that is jeopardising its reputation and business relationships.
Exhibits attached to the court documents include specific violation notices sent to property firms, including Terra Developers, Megamound Investment Limited, and Urag Real Estate.
Each firm was reportedly required to pay a fine of N1 million per violation for publishing “unapproved advertisements” in Castles Lifestyle and Highbrow Living.
These notices cited Section 54 of the ARCON Act as justification and required immediate payment within a strict seven-day timeframe, threatening further sanctions for non-compliance
Realhouse Communications argued that such actions have shaken the confidence of its long-standing advertisers and could cripple its operations if not immediately restrained.
The affidavit stated that, unless the court intervenes, ARCON would continue to harass its clients and interfere with its lawful business activities.
The company maintained that the ARCON Act, 2022, as currently enforced, grants the regulatory agency sweeping, autocratic powers that fundamentally contradict the spirit of the Nigerian Constitution, particularly concerning press freedom and administrative justice.
ARCON has been given a short window of five days from the date of service of the summons to enter an appearance in the legal case.
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