The Federal Competition and Consumer Protection Commission (FCCPC) has formally accused Coca-Cola Nigeria Ltd and the Nigerian Bottling Company (NBC) of misleading trade descriptions and unfair marketing tactics in their products Original Taste and Less Sugar.
This was disclosed in a press statement signed by the commission’s management and posted on the official X handle of the organisation.
According to the statement, the commission found Coca-Cola Nigeria and NBC in violation of section 116 of the FCCPC Act as well as section 124 1(a) of the Commission’s Establishment Act.
The FCCPC noted that Coca-Cola Nigeria Ltd and NBC were guilty of deceiving the public by describing the variant of its Coca-Cola ‘Original Taste, Less Sugar’ as the same as its ‘Original Taste’ variant in terms of formulation.
The Commission stated that the issue of Abuse of Dominance and the appropriate penalty under the FCCPA and Administrative Penalties Regulation 2020 (APR) have been reserved for further regulatory action, with penalties to be imposed in due course.
The statement reads, “Accordingly, and considering that the conduct continues and remains, the Commission has entered, issued and served its Final Order on Coca-Cola and NBC on July 29, 2024. The Final Order contains the Commission’s findings some of which include:”
“Misleading trade descriptions under Section 116 FCCPA by continuing to mislead consumers to believing Coca-Cola Original Taste is not materially different from Coca-Cola Original Taste “Less Sugar.”
“Unfair marketing tactics: 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, contrary to Sections 123(1)(a), (b), and (c) of the FCCPA.”
“Further, Coca-Cola and NBC after regulatory intervention still failed to take appropriate steps to modify misleading behaviour demonstrating that the Companies acted intentionally by misrepresenting Coca-Cola Original Taste Less Sugar as Coca-Cola Original Taste in a deliberate business strategy.”
Furthermore, NBC used identical packaging for both Zero Sugar and its 50:50 variant of Limca Lime-Lemon flavoured drink, misleading consumers and violating Sections 17(g), 116(1) & (2), and 123 of the FCCPA and Section 2(a) of the National Agency for Food and Drug Administration and Control Act 2004. The Commission found NBC applied deceptive trade descriptions to the two variants and supplied these products to consumers violating Section 116 (3) of the FCCPA.
History of the investigation
The Commission clarified that it initiated its investigation in 2019 after the companies transitioned the Coke brand from regular sugar to non-nutritive sweeteners.
It was alleged that these practices followed similar actions with the Sprite and Fanta brands, which violated FCCPA regulations on misleading trade descriptions and abuse of dominant market positions in certain locations.
