The Federal Competition and Consumer Protection Commission (FCCPC) has called on the Competition and Consumer Protection Tribunal to dismiss Coca-Cola Nigeria Limited’s (CCNL) amended appeal challenging the N186.6 million penalty imposed for its labelling and marketing practices.
The FCCPC’s position was outlined in a formal written reply to CCNL’s amended appeal, dated October 22, 2024.
The commission reiterated its stance that Coca-Cola’s branding and marketing tactics were misleading to consumers and violated competition and consumer protection regulations.
The N186 million penalty was levied against CCNL following accusations of employing deceptive trade descriptions, particularly regarding its “Coca-Cola Original Taste” and “Coca-Cola Original Taste, Less Sugar” products.
The FCCPC claimed that the company presented the two variants as identical in formulation, misleading consumers about their differences.
In its defence, Coca-Cola, through its legal counsel, Gbolahan Elias, argued that the FCCPC exceeded its statutory powers by acting as complainant, investigator, prosecutor, and judge in the matter.
The company also alleged that the penalty was “outrageous” and that the FCCPC lacked the jurisdiction to impose or enforce such decisions.
Read also: FCCPC’s heavy-handedness and the threat to Nigeria’s business and economic future
In its reply, the FCCPC dismissed Coca-Cola’s claims of procedural bias and unfair treatment, insisting that the company was granted a fair hearing throughout the investigation. The commission highlighted Coca-Cola’s participation in investigations, submission of written responses, and involvement in multiple consultative meetings.
The FCCPC also asserted that it has the statutory authority under the Federal Competition and Consumer Protection Act (FCCPA) to investigate, issue directives, and enforce penalties related to misleading branding and consumer protection violations.
The commission further argued that Coca-Cola admitted to some regulatory breaches and proposed remedial actions but failed to adequately address key concerns, particularly the distinction between the two product variants.
The FCCPC alleged that Coca-Cola has continued to engage in misleading branding practices, demonstrating a pattern of regulatory non-compliance. It emphasised that its actions and penalties were not only lawful but necessary to uphold consumer rights and promote fair competition.
“Coca-Cola and NBC, after regulatory intervention, failed to take appropriate steps to address their misleading behaviour. This demonstrates that the companies intentionally misrepresented Coca-Cola Original Taste, Less Sugar as Coca-Cola Original Taste as part of a deliberate business strategy,” the Commission stated
The FCCPC also opposed Coca-Cola’s request for a private hearing, maintaining that the case involves significant public interest. It argued that the proceedings should remain open to ensure transparency and accountability.
The tribunal has scheduled the next hearing for February 4, 2025. Meanwhile, the FCCPC has pledged not to take further regulatory or enforcement actions against Coca-Cola Nigeria Ltd pending the determination of the appeal.
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