Coca-Cola Nigeria, NBC Under Fire for Misleading Labeling and Unfair Practices

By Abubakar Yunusa

The Federal Competition and Consumer Protection Commission (FCCPC) has issued a Final Order against Coca-Cola Nigeria Limited and Nigerian Bottling Company Limited (NBC), citing serious violations of the Federal Competition and Consumer Protection Act, 2018 (FCCPA).

The investigation, which began in June 2019, uncovered numerous instances of misleading product labeling, deceptive marketing tactics, and potential abuse of market dominance.

According to a statement signed by the FCCPC and sent to Peoples Daily on Thursday, the controversy centers on the companies’ transition from regular sugar to non-nutritive sweeteners in their products, including the popular Coke brand.

The FCCPC found that Coca-Cola and NBC failed to transparently communicate these changes to consumers, misleadingly marketing the reformulated products as identical to their original versions.

Specifically, the “Coca-Cola Original Taste, Less Sugar” variant was marketed as the same as the classic “Coca-Cola Original Taste,” despite significant differences in formulation.

Between June 2019 and December 2020, the FCCPC conducted an in-depth investigation, securing internal documents and production logs from the companies.

” These documents revealed that Coca-Cola and NBC had misled consumers about the nature of their products, violating sections 116, 123, and 124 of the FCCPA.

“Even after being alerted by the FCCPC, the companies continued to use indistinguishable packaging for different product variants, further confusing consumers.

In an attempt to resolve the issue, the FCCPC and the companies agreed on a more transparent labeling system.

However, on the eve of the implementation deadline, Coca-Cola and NBC abandoned the agreement, opting for a different business strategy that failed to meet the agreed standards.

Despite multiple engagements and opportunities to comply with the law, the companies continued to mislead consumers, prompting the FCCPC to take final action.

The Final Order highlights multiple violations, including misleading trade descriptions and unfair marketing practices.

” It also points out that NBC used identical packaging for both the Zero Sugar and 50:50 variants of Limca Lime-Lemon flavored drink, misleading consumers and violating both FCCPA and National Agency for Food and Drug Administration and Control (NAFDAC) regulations.

The FCCPC has reserved judgment on the issue of abuse of dominance and the quantum of penalties, indicating that further regulatory actions will follow. The Commission’s findings and the full investigative report can be accessed at the FCCPC’s website.

The outcome of this investigation serves as a stern reminder of the importance of transparency and consumer protection in Nigeria’s competitive market landscape.