The Federal Competition and Consumer Protection Commission (FCCPC) announced on Thursday that it will levy appropriate penalties against Coca-Cola Nigeria Limited and Nigerian Bottling Company Limited (NBC) for alleged violations of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
In a statement, the FCCPC management disclosed that it had gathered substantial evidence indicating that Coca-Cola and NBC had repeatedly violated the FCCPA, particularly concerning transparency and clear disclosure obligations to their consumers.
The companies are accused of misleadingly presenting their Coca-Cola “Original Taste, Less Sugar” variant as identical to the classic “Original Taste” formula, despite differences in formulation.
The FCCPC noted that “One of the parties also attempted to, or misled the commission under Section 112 of the FCCPA,” underscoring the severity of the alleged misrepresentation.
The commission initiated a formal investigation between June 2019 and December 2020, scrutinizing internal documents and production logs from Coca-Cola and NBC. The investigation aimed to verify the accuracy of the companies’ claims and assess any discrepancies. It found that the companies engaged in misleading trade descriptions under Section 116 of the FCCPA by suggesting that the “Original Taste” was not materially different from the “Original Taste, Less Sugar” variant.
Furthermore, the FCCPC highlighted concerns over unfair marketing practices, stating, “Contrary to Section 124(1)(a) of the FCCPA, Coca-Cola Nigeria markets Coca-Cola Original Taste Less Sugar in packaging first, indistinguishable, and now not sufficiently distinguishable from Coca-Cola Original Taste.” The commission also noted that despite regulatory interventions, the companies failed to adequately address the misleading information, indicating intentional misrepresentation as a deliberate business strategy.
Additionally, the FCCPC pointed out that NBC used identical packaging for both the Zero Sugar and 50:50 variant of Limca Lime-Lemon flavored drink, violating several sections of the FCCPA and the National Agency for Food and Drug Administration and Control Act 2004. The commission found that NBC applied deceptive trade descriptions to these variants, contravening Section 116(3) of the FCCPA.
The FCCPC has deferred the decision on potential Abuse of Dominance and the specific quantum of penalties under the FCCPA and Administrative Penalties Regulation 2020 (APR). These penalties will be determined and imposed in due course, as the commission continues to uphold consumer rights and market fairness.
