₦airaland Forum

The Federal Competition and Consumer Protection Commission (FCCPC) has warned Coca-Cola Nigeria Limited (Coca-Cola) and the Nigerian Bottling Company Limited (NBC) over the use of misleading trade descriptions.

FCCPC, in a statement on Thursday, said the companies have been carrying out unfair tactics, thereby “misleading consumers”.

The commission said Coca-Cola and the NBC are guilty of deceiving the public by describing the variant of its Coca-Cola “Original Taste, Less Sugar” as the same as its “Original Taste” variant in terms of formulation.

“In June 2019, the Federal Competition and Consumer Protection Commission (Commission) became aware that Coca-Cola Nigeria Limited (Coca-Cola) and Nigerian Bottling Company Limited (NBC) (jointly referred to as the “Companies”) had commenced a migration of their Coke brand from a formulation that included regular sugar to non-nutritive sweeteners,” the statement reads said.

“The migration at the time, though not concluded, apparently followed previously concluded, but undisclosed and uncommunicated migrations with respect to their other brands, to wit: Fanta and Sprite (as the Investigation will later discover).

“The strategy and conduct at the time appeared to possibly infringe FCCPA provisions prohibiting misleading trade descriptions, unfair marketing tactics, and questions whether some pricing strategies in certain geographical areas of Nigeria were on account of market power in the geographic areas, and as such constituted abuse of dominant market position.”


‘COMPANIES ABANDONED DEAL, USED DIFFERENT BUSINESS STRATEGY’

FCCPC also said Coca-Cola and the NBC abandoned months of work and mutually agreed outcome with the commission for a different business strategy.

This adopted strategy, the commission said, has turned out not to meet the applicable standards.

“Accordingly, and considering that the conduct continues and remains, the Commission has entered, issued and served its Final order on Coca-Cola and NBC on July 29, 2024,” the statement further reads.

“The Final Order contains the Commission’s findings some of which include:Misleading trade descriptions under Section 116 FCCPA by continuing to mislead consumers to believing Coca-Cola Original Taste is not materially different from Coca-Cola Original Taste ‘Less Sugar’.

“Unfair marketing tactics: Contrary to Section 124(1)(a) of the FCCPA, Coca-Cola Nigeria markets Coca-Cola Original Taste Less Sugar in packaging first, indistinguishable, and now not sufficiently distinguishable from Coca-Cola Original Taste, contrary to Sections 123(1)(a), (b), and (c) of the FCCPA.”

The commission said Coca-Cola and NBC, after regulatory intervention, still failed to take appropriate steps to “modify misleading behaviour demonstrating that the companies acted intentionally by misrepresenting Coca-Cola Original Taste Less Sugar as Coca-Cola Original Taste in a deliberate business strategy”.

“Furthermore, NBC used identical packaging for both Zero Sugar and its 50:50 variant of Limca Lime- Lemon flavoured drink, misleading consumers and violating Sections 17(g), 116(1) & (2), and 123 of the FCCPA and Section 2(a) of the National Agency for Food and Drug Administration and Control Act 2004,” the statement added.

“The commission found NBC applied deceptive trade descriptions to the two variance and supply these products to consumers violating Section 116 (3) of the FCCPA.”

The commission said it has reserved the question of “abuse of dominance and quantum of the penalty appropriate under the FCCPA and Administrative Penalties Regulation 2020 (APR) for further regulatory action, and same will be imposed in due course”.


FCCPC’S ORDERS TO THE COMPANIES


The commission, therefore asked the companies to ensure sufficient and acceptable packaging, labels, and differentiation between Coke Original Taste and Coke Original Taste Less Sugar — satisfactory to and approved by the commission.

FCCPC also ordered the immediate conduct of a robust advertorial campaign of all its product variants in a manner that provides consumers with clear and adequate identification factors that aid them in clearly distinguishing one variant from the other, without ambiguity, deception or confusion.

The commission noted that the companies are subject to supervision for a period of 24 months.

On July 19, the FCCPC fined Meta $220 million for data privacy violations.

THE INVENTOR OF COCA-COLA, STITH PEMBERTON

John Stith Pemberton, born on July 8, 1831 in Knoxville, Georgia, United States, is known worldwide as the inventor of the Coca-Cola drink.

Its creation has had a lasting impact on the beverage industry and global popular culture. Pemberton, a professional pharmacist, sought to develop a medicinal drink to help relieve his pain after being passed down in the American Civil War. In 1886, in his laboratory in Atlanta, Georgia, Pemberton created a syrup based on extract of coca leaves and kola nuts, mixed with carbonated water.

Initially, the drink was marketed as a medicinal tonic called "French Wine Coca." When Atlanta implemented an alcohol ban in 1886, Pemberton modified his formula to create a non-alcoholic drink. The result was Coca-Cola, a drink that quickly gained popularity for its unique and refreshing taste.

The iconic Coca-Cola name and logo were created by Pemberton's partner, Frank M. Robinson. Although Pemberton sold the rights to his formula to several partners due to financial and health problems, his invention laid the foundation for what would become one of the most recognized and valuable brands in the world.

Coca-Cola remains a symbol of innovation and commercial success. John Stith Pemberton passed away on August 16, 1888, but his legacy lives on in every bottle of Coca-Cola enjoyed around the world.

vengertime:
Is like Tinubu Owo da spirit have entered the man heading this agency .

All he want is to defraud foreign companies that dont mind to leave Nigeria sef.

First it's WhatsApp now Coca cola.

If protesters don't match to their office in Abuja by tomorrow I would have to deal with them myself

obawinner:
There's an effective consumer protection ensuring fair balance , it think it's witch hunting.