[dropcap]T[/dropcap]he Federal Competition and Consumer Protection Commission (FCCPC) has concluded its investigation into Coca-Cola Nigeria Limited and Nigerian Bottling Company Limited (NBC) regarding misleading product labelling and unfair marketing tactics, in violation of the Federal Competition and Consumer Protection Act, 2018 (FCCPA).
In June 2019, the FCCPC began investigating the companies following reports that Coca-Cola and NBC had started migrating their Coke brand from a formulation with regular sugar to non-nutritive sweeteners.
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This change was not transparently communicated to consumers, raising concerns about misleading trade descriptions and potential abuse of dominant market position.
The FCCPC’s investigation, which spanned from June 2019 to December 2020, revealed that Coca-Cola and NBC repeatedly violated the FCCPA.
The companies failed to provide clear and transparent product labelling, misleading consumers into believing that the Coca-Cola “Original Taste, Less Sugar” variant was the same as the original formulation.
The investigation also discovered similar undisclosed changes in their Fanta and Sprite brands.
Despite multiple engagements and opportunities to rectify the situation, Coca-Cola and NBC did not comply with the required standards.
The FCCPC granted extensions to allow the companies to adjust their labelling and packaging, but these efforts were ultimately abandoned for a different business strategy that failed to meet regulatory standards.
The Final Order issued by the FCCPC on July 29, 2024, outlines the findings, including:
- Misleading Trade Descriptions: Under Section 116 of the FCCPA, Coca-Cola and NBC misled consumers by marketing Coca-Cola Original Taste as identical to Coca-Cola Original Taste “Less Sugar.”
- Unfair Marketing Tactics: Contrary to Section 124(1)(a) of the FCCPA, the companies marketed Coca-Cola Original Taste Less Sugar in packaging that was indistinguishable or not sufficiently distinguishable from Coca-Cola Original Taste.
Additionally, NBC used identical packaging for both Zero Sugar and its 50:50 variant of Limca Lime-Lemon flavoured drink, further misleading consumers and violating multiple sections of the FCCPA and the National Agency for Food and Drug Administration and Control Act 2004.
The FCCPC has reserved the question of abuse of dominance and the appropriate penalties for further regulatory action.
Ojelabi, the publisher of Freelanews, is an award winning and professionally trained mass communicator, who writes ruthlessly about pop culture, religion, politics and entertainment.
