The Federal Competition and Consumer Protection Commission (FCCPC) has issued a final regulatory order against Coca-Cola and the Nigerian Bottling Company (NBC) Ltd for misleading trade descriptions and unfair marketing tactics.
This action was taken in response to violations of Sections 116 and 124 (1) of the FCCP Act.
In a statement released on Thursday, the FCCPC revealed that the companies had misled consumers into believing that Coca-Cola’s “Original Taste, Less Sugar” variant was identical to the classic “Original Taste” product, despite differences in formulation. The investigation showed that the new variant was significantly different from the classic version.
The FCCPC announced that it has reserved the quantum of penalties appropriate under the FCCPA and Administrative Penalties Regulation 2020 (APR) for further regulatory action, which will be imposed in due course.
Initially, Coca-Cola and NBC attempted to resolve the issue by proposing clearer, more transparent descriptions and differentiation of their products. The commission granted this accommodation and allowed the companies to propose remedies that complied with statutory standards.
The statement detailed, “The commission granted this accommodation and also gave Coca-Cola and NBC the opportunity and prerogative to propose remedies, including descriptions and product differentiations that comply with applicable statutory standards. Coca-Cola, NBC, and the commission engaged in a lengthy process of building consensus around a mutually agreed differentiation and description of the different relevant products.”
Despite being granted an extension to change their packaging and descriptions, Coca-Cola and NBC deviated from the mutually agreed outcomes just before the deadline, opting for a business strategy that did not meet regulatory standards. Over the years, it became apparent that neither company intended to provide the necessary transparency to consumers, as evidenced by the current market status and consumer feedback.
The FCCPC noted that despite multiple engagements with Coca-Cola, NBC, and their legal practitioners, the companies failed to make appropriate modifications to their misleading practices. This demonstrated a deliberate strategy to misrepresent the “Coca-Cola Original Taste Less Sugar” variant as the classic “Coca-Cola Original Taste.”
Additionally, NBC used identical packaging for both the Zero Sugar and 50:50 variant of Limca Lime-Lemon flavored drink, misleading consumers and violating Sections 17(g), 116(1) & (2), and 123 of the FCCPA, as well as Section 2(a) of the National Agency for Food and Drug Administration and Control Act 2004.
Consequently, the FCCPC issued its final order on July 29, containing the commission’s findings and conclusions. This investigation, which began in 2019, underscores the FCCPC’s commitment to protecting consumers from deceptive business practices and ensuring compliance with regulatory standards.
