The fine relates to misleading packaging on Coke products, specifically the “Original Taste, Less Sugar” variant, which was found to mislead consumers into believing it was identical to the regular “Original Taste” version. 

Despite NBC’s attempts to contest the penalty, the Tribunal reaffirmed that the Federal Competition and Consumer Protection Commission (FCCPC) was justified in issuing the fine.

The issue dates back to allegations made by the FCCPC, which claimed that NBC and its partner, Coca-Cola Nigeria Ltd (CCNL), engaged in misleading trade descriptions and deceptive marketing practices. NBC, however, took the matter to the Tribunal, appealing for the fine to be overturned. 

The company argued that the mislabeling was not intentional but was due to a production error at one of its plants. The mislabeling occurred at NBC’s Abuja plant, which, according to NBC, was an isolated incident.

NBC’s legal team, led by Oluseye Opasanya (SAN), contended that the findings of the FCCPC were overreaching. 

They questioned the adequacy of the evidence used to impose the fine, suggesting that the investigation should have extended to other factories to establish whether the mislabeling occurred at a broader scale. 

In their defence, they pointed out that the alleged misrepresentation was an unintentional mistake, not a deliberate act of deception.

The Tribunal, however, was not swayed. In its ruling, chaired by Thomas Okosun, the Tribunal dismissed NBC’s appeal, stating that the actions of the company were indeed misleading and in violation of the law. 

The Tribunal found that NBC’s approach to settling the issue with the FCCPC after the judgment had been reserved was improper and contrary to legal norms. As Okosun noted, such a settlement attempt post-judgment reservation “undermines the FCCPC’s role as a regulator” and “exceeds its powers.”

The Tribunal further criticised the manner in which the FCCPC handled the settlement. Despite earlier indications that a settlement had been reached, the Tribunal found that accepting the settlement after final addresses had been submitted was inappropriate and beyond the Commission’s regulatory remit. 

The Tribunal made it clear that it would not indulge in private compromises and upheld its duty to the public by sticking to its constitutional mandate.

Ultimately, the Tribunal ruled that the N190 million penalty imposed by the FCCPC was both lawful and appropriate, in line with the provisions of the Federal Competition and Consumer Protection Act (FCCPA) and the 1999 Constitution. NBC was given 60 days to pay the fine.

This ruling is part of a bigger issue, with Coca-Cola Nigeria Ltd and the FCCPC also engaged in a separate case over an additional N186.67 million penalty related to the company’s labelling and marketing practices. 

For now, the FCCPC has agreed not to take further enforcement action against NBC or Coca-Cola until the appeals are resolved.

The company has debunked accusations of deceiving consumers and reiterated its focus on compliance with national regulations and transparency in product labelling.

In a statement released over the weekend, Coca-Cola Nigeria wrote, “Coca-Cola Nigeria provides clear, accessible nutrition information on our packaging in line with national regulatory requirements and is committed to transparency for consumers.” 

This response comes after the FCCPC announced potential fines for alleged breaches of Consumer Rights Law by Coca-Cola Nigeria and the Nigerian Bottling Company Limited (NBC).

The FCCPC stated that both companies violated the Federal Competition and Consumer Protection Act (FCCPA) 2018 by not adequately distinguishing between product variants such as Coca-Cola Original Taste and Coca-Cola Original Taste Less Sugar. 

The commission’s investigation, which included a review of internal documents and production logs from June 2019 to December 2020, aimed to determine the validity of these claims.

According to the FCCPC, Coca-Cola and NBC continued to use indistinguishable packaging even after regulatory interventions, concluding intentional misrepresentation. 

The FCCPC pointed out similar issues with NBC’s Limca Lime-Lemon flavoured drink, where identical packaging was used for Zero Sugar and the 50:50 variant, leading to consumer confusion.

In its statement, Coca-Cola Nigeria noted its priority to consumer interests and collaborative approach with government authorities. “Our priority is safeguarding consumer interests, and we will continue to work constructively with the government on this matter. We strongly believe that the Coca-Cola System in Nigeria has complied with all regulations and look forward to the opportunity to bring this topic to closure,” the company asserted.

Coca-Cola affirms a compliant and transparent entity in the Nigerian market. The company has reassured the public, aiming to maintain consumer trust while addressing the regulatory challenges from FCCPC’s ongoing investigation.