By Milcah Tanimu
The Federal Competition and Consumer Protection Commission (FCCPC) has completed a detailed investigation into Coca-Cola Nigeria Limited and the Nigerian Bottling Company Limited (NBC), uncovering significant transparency and consumer communication breaches.
Initiated in June 2019, the inquiry focused on the companies’ shift from traditional sugar to non-nutritive sweeteners in their Coke, Fanta, and Sprite brands, which was not adequately communicated to consumers.
According to a statement by the FCCPC, Coca-Cola and NBC repeatedly violated the Federal Competition and Consumer Protection Act (FCCPA), particularly concerning misleading trade descriptions and unfair marketing tactics.
The investigation found that Coca-Cola and NBC marketed the “Original Taste, Less Sugar” variant as identical to the classic Coca-Cola, despite differences in formulation. This misrepresentation extended to Fanta and Sprite products with similar undisclosed changes.
By December 2020, the FCCPC had gathered substantial evidence demonstrating these violations. The commission found that Coca-Cola and NBC failed to provide clear and accurate information to consumers, intentionally misleading them about the nature of their products. Internal documents indicated the companies were aware of the ineffectiveness of their product differentiations and continued misleading practices.
Initially, Coca-Cola and NBC agreed to adopt more transparent product descriptions to resolve the matter. However, they later abandoned this commitment, opting for a business strategy that failed to meet regulatory standards. Despite numerous opportunities to comply, their efforts remained inadequate.
On July 29, the FCCPC issued a Final Order detailing its findings, highlighting the use of misleading trade descriptions and unfair marketing tactics by Coca-Cola and NBC. The order noted the companies’ violations of several sections of the FCCPA.
Additionally, the FCCPC noted that NBC misled consumers by using identical packaging for both the Zero Sugar and 50:50 variants of the Limca Lime-Lemon flavored drink, further contravening regulatory standards.
The commission has reserved judgment on the issue of Abuse of Dominance and the appropriate penalties under the FCCPA and the Administrative Penalties Regulation 2020, which will be imposed in due course.
