The management of Coca-Cola System, comprising Coca-Cola Nigeria and its bottling partner, Nigerian Bottling Company Limited (NBC), has denied allegations of misleading product labelling levelled against it by Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC).
The company asserted it provides clear and accessible nutrition information on its packaging in accordance with national regulatory requirements.
In a statement issued on Friday, Coca-Cola System reiterated its adherence to regulatory standards and its dedication to consumer transparency.
“Our priority is safeguarding consumer interests, and we will continue to work constructively with the government on this matter. We strongly believe that the Coca‑Cola System in Nigeria has complied with all regulations and look forward to the opportunity to bring this topic to closure,” the beverage company said.
FCCPC’s accusations
The FCCPC recently claimed that it had uncovered significant breaches in transparency and consumer communication by Coca-Cola Nigeria and NBC.
The regulator accused the companies of violating the Federal Competition and Consumer Protection Act (FCCPA) 2018 by misrepresenting the “Original Taste, Less Sugar” variant of Coca-Cola as being identical to the classic “Original Taste” variant, despite the products being materially different.
The commission also alleged that the companies attempted to mislead regulatory authorities under Section 112 of the FCCPA.
The FCCPC’s investigation, which spanned from June 2019 to December 2020, involved the examination of internal documents and production logs to verify the allegations. The commission accused the companies of employing unfair marketing tactics and using indistinguishable packaging for different product variants, thus misleading consumers.
“The Companies knowingly and intentionally applied a trade description to the Coca-Cola Less Sugar variant that could reasonably mislead consumers as to the nature and feel of the drink, in such a manner that consumers would assume that the product was the Coca-Cola Original Taste variant, in violation of Section 116 (1) and (2) of the FCCPA,” FCCPA’s investigation report read in part.
“The Commission received multiple complaints associated with this, and as such also concludes based on the evidence, that consumers were indeed, and as a matter of fact misled by the false and inaccurate portrayal of Coke Original Taste Less Sugar as Coke Original Taste. This portrayal, enterprise and infringement commenced in October 2018, and continues to date.”
What happens if FCCPC’s allegations are proven true?
If Coca-Cola Nigeria and its bottling partner, NBC are found guilty of the allegations made by the FCCPC, they could face several consequences:
- Financial penalties: The FCCPC has indicated that it will impose appropriate penalties on Coca-Cola Nigeria and NBC in due course, following the findings of its investigation.
- Corrective actions: The beverage company could be required to take corrective measures, such as changing their product packaging to ensure clearer distinctions between different variants and accurate product descriptions.
- Increased regulatory oversight: The companies might face heightened scrutiny and more stringent regulatory oversight. For instance, they could be subjected to regular audits and inspections to ensure compliance with consumer laws.
- Reputational damage: If FCCPC’s accusations are proven true it could significantly harm Coca-Cola and NBC’s reputation and result in a loss of consumer trust and a drop in sales and market shares.
- Depending on the findings, the companies could face additional legal challenges, including potential lawsuits from consumers or other stakeholders.
- Impact on operations: Regulatory bodies might impose restrictions on the sale or distribution of the contested products until compliance is achieved. This could disrupt Coca-Cola and NBC’s business operations.
