The Federal Competition and Consumer Protection Commission (FCCPC) has announced that it will impose penalties on Coca-Cola Nigeria Limited and Nigerian Bottling Company Limited (NBC) for repeatedly misleading consumers about product changes. The decision follows an extensive investigation into the companies’ marketing practices and product transparency.
The FCCPC investigation, which spanned from June 2019 to December 2020, found that Coca-Cola and NBC marketed their “Original Taste, Less Sugar” variant as identical to the classic Coca-Cola, despite significant differences in formulation. This misrepresentation extended to other products, including Fanta and Sprite, where similar undisclosed changes were made.
According to the FCCPC, Coca-Cola and NBC violated the Federal Competition and Consumer Protection Act (FCCPA) by using misleading trade descriptions and employing unfair marketing tactics. The investigation revealed that the companies were aware of the ineffectiveness of their product differentiations but continued to mislead consumers.
The commission found that Coca-Cola and NBC’s packaging for the “Original Taste” and “Less Sugar” variants was not sufficiently distinguishable, leading consumers to believe they were the same product. Similar deceptive practices were noted for the Zero Sugar and 50:50 variants of the Limca Lime-Lemon flavored drink.
Despite initially agreeing to adopt more transparent product descriptions, Coca-Cola and NBC failed to follow through with their commitments. The FCCPC noted that the companies’ efforts to comply with regulatory standards remained inadequate even after multiple opportunities were provided.
In response to these findings, the FCCPC issued a Final Order on July 29, detailing the violations and outlining the penalties. The commission emphasized that the companies’ actions were intentional and part of a deliberate strategy to mislead consumers.
“The FCCPC’s actions are based on legitimate concerns about consumer protection and data privacy. Similar measures have been implemented in other jurisdictions without forcing companies to exit the market. The case of Nigeria will not be different,” the commission stated.
The FCCPC has reserved judgment on the issue of Abuse of Dominance and the appropriate penalties, which will be imposed in due course. This decisive action aims to ensure accountability for the violations and promote a fairer and more transparent market in Nigeria.
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