Hot on the heels of its recent investigation into WhatsApp, the Federal Competition and Consumer Protection Commission (FCCPC) has opened a probe into Coca-Cola Nigeria Limited and Nigerian Bottling Company Limited.
The investigation focuses on allegations of misleading product labelling and a lack of transparency regarding changes in ingredients.
According to the FCCPC’s statement, issues arose in June 2019 when the commission became aware that Coca-Cola was changing its Coke brand from a sugar-based formula to one containing non-nutritive sweeteners.
This change, the FCCPC alleges, was not adequately communicated to consumers. “The Commission was convinced based on the evidence, that Coca-Cola and NBC on multiple occasions, and counts violated, and remained in violation of the FCCPA, particularly with respect to transparency, and clear disclosure obligations to their product patrons,” the statement reads.
Specifically, the FCCPC accuses Coca-Cola of misleading consumers about its “Original Taste, Less Sugar” variant, alleging that the company portrayed this product as identical to the classic Coca-Cola, despite a difference in formulation. Similar issues were raised regarding undisclosed changes in Fanta and Sprite.
The FCCPC claims it engaged with Coca-Cola and NBC in an attempt to reach a resolution, which included seeking internal documents and production logs to verify the allegations.
While the commission initially accommodated attempts by the companies to implement clearer labelling and product differentiation, Coca-Cola and NBC ultimately abandoned these exertions, leading to a final order issued on July 29, 2024.
The final order outlines findings that include misleading trade descriptions and unfair marketing tactics. The Commission states that Coca-Cola’s packaging fails to adequately differentiate between “Original Taste” and “Less Sugar” versions, violating several sections of the Federal Competition and Consumer Protection Act.
The FCCPC claims that the Nigerian Bottling Company engaged in deceptive trade practices by using identical packaging for both its Zero Sugar and 50:50 sugar/sweetener Limca drink, misleading consumers.
The FCCPC has reserved the right to impose penalties on both Coca-Cola and NBC for these violations and has not ruled out investigating possible abuse of market dominance by the companies. NBC was also found to have used identical packaging for different variants of Limca Lime-Lemon, further confusing consumers.
The FCCPC is considering additional regulatory actions, including assessing penalties for potential abuse of market authority. The Commission emphasises its focus on ensuring that companies provide clear and honest product information to consumers.
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