Top Stories Tamfitronics
Top Stories Tamfitronics The Federal Competition and Consumer Protection Commission (FCCPC), has accused Coca-Cola Nigeria Limited and Nigerian Bottling Company of intentionally deceiving Nigerians with one of its products.
The Commission said the companies are guilty of deceptive labelling, misleading trade descriptions and unfair marketing practices by making consumers believe Coca-Cola Original Taste is not materially different from Coca-Cola Original Taste ‘Less Sugar’.
A statement by the FCCPC on Thursday, said Coca-Cola Nigeria and NBC are in violation of section 116 of the FCCPC Act as well as section 124 1(a) of the Commission’s Establishment Act.
The commission added that its position is based on years of investigation which commenced in 2019, noting 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 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.
”Coca-Cola and NBC sought an extended timeline before changing to the newly mutually agreed product descriptions and differentiations as proposed by them in order to exhaust existing packaging inventory, and lead time for new packaging inventory to arrive in stock.
”The Commission granted the extension as requested.
”On the eve of the cut-off date, and end of the extension, Coca-Cola and NBC abandoned the months of work and mutually agreed outcome with the Commission, for a different business strategy, which has turned out not to meet the applicable standards.
”Over the next years, it became clear to the Commission that neither Coca-Cola nor NBC desired or intended to provide transparency to consumers in a manner that complied with the standards in the FCCPA,” the Commission said.
The FCCPC said Coca-Cola failed to make necessary adjustments despite the earlier warnings.
”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.
”This also violates Section 2(a) of the National Agency for Food and Drug Administration and Control Act 2004.
”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.
”The Final Order contains the Commission’s findings.”
Coca-Cola has yet to react to the accusation as of the time of filing this report.
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