(FCCPC) has warned Coca-Cola Nigeria Limited (Coca-Cola) and the Nigerian
Bottling Company Limited (NBC) over the use of misleading trade descriptions.
FCCPC, in a statement on Thursday, said the companies have
been carrying out unfair tactics, thereby “misleading consumers”.
The commission said Coca-Cola and the NBC are 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.
“In June 2019, the Federal Competition and Consumer
Protection Commission (Commission) became aware that Coca-Cola Nigeria Limited
(Coca-Cola) and Nigerian Bottling Company Limited (NBC) (jointly referred to as
the “Companies”) had commenced a migration of their Coke brand from a
formulation that included regular sugar to non-nutritive sweeteners,” the
statement reads said.
“The migration at the
time, though not concluded, apparently followed previously concluded, but
undisclosed and uncommunicated migrations with respect to their other brands,
to wit: Fanta and Sprite (as the Investigation will later discover).
“The strategy and conduct at the time appeared to possibly
infringe FCCPA provisions prohibiting misleading trade descriptions, unfair
marketing tactics, and questions whether some pricing strategies in certain
geographical areas of Nigeria were on account of market power in the geographic
areas, and as such constituted abuse of dominant market position.”
‘COMPANIES ABANDONED
DEAL, USED DIFFERENT BUSINESS STRATEGY’
FCCPC also said Coca-Cola and the NBC abandoned months of
work and mutually agreed outcome with the commission for a different business
strategy.
This adopted strategy, the commission said, has turned out
not to meet the applicable standards.
“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 statement further reads.
“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.”
The commission said 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 statement added.
“The commission found NBC applied deceptive trade
descriptions to the two variance and supply these products to consumers
violating Section 116 (3) of the FCCPA.”
The commission said it has reserved the question of “abuse
of dominance and quantum of the penalty appropriate under the FCCPA and
Administrative Penalties Regulation 2020 (APR) for further regulatory action,
and same will be imposed in due course”.
FCCPC’S ORDERS TO THE
COMPANIES
The commission, therefore asked the companies to ensure
sufficient and acceptable packaging, labels, and differentiation between Coke
Original Taste and Coke Original Taste Less Sugar — satisfactory to and
approved by the commission.
FCCPC also ordered the immediate conduct of a robust advertorial
campaign of all its product variants in a manner that provides consumers with
clear and adequate identification factors that aid them in clearly
distinguishing one variant from the other, without ambiguity, deception or
confusion.
The commission noted that the companies are subject to
supervision for a period of 24 months.
On July 19, the FCCPC fined Meta $220 million for data
privacy violations.
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