The Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to Coca-Cola Nigeria Limited and the Nigerian Bottling Company Limited (NBC) for employing misleading trade descriptions in their marketing practices.
The FCCPC accused the companies of deceiving consumers by falsely presenting the “Original Taste, Less Sugar” variant of Coca-Cola as identical in formulation to the “Original Taste” variant.
In a statement released on Thursday, the FCCPC outlined its concerns, noting that in June 2019, Coca-Cola and NBC began transitioning their Coke brand from a formulation that included regular sugar to one with non-nutritive sweeteners.
This shift, the commission revealed, was part of a broader, undisclosed migration that had already affected other brands like Fanta and Sprite.
The FCCPC criticized the companies for engaging in practices that could potentially violate the Federal Competition and Consumer Protection Act (FCCPA).
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These practices include misleading trade descriptions, unfair marketing tactics, and possible abuse of market dominance in certain regions of Nigeria.
The commission also expressed frustration over Coca-Cola and NBC’s abandonment of a mutually agreed strategy that had been developed in collaboration with the FCCPC.
The companies, according to the commission, opted for a different approach that ultimately failed to meet regulatory standards.
As a result, on July 29, 2024, the FCCPC issued a Final Order to Coca-Cola and NBC, highlighting several findings:
Misleading trade descriptions: The companies misled consumers into believing that Coca-Cola Original Taste and Coca-Cola Original Taste Less Sugar were not materially different.
Unfair marketing tactics: Coca-Cola Nigeria marketed the “Less Sugar” variant in packaging that was either indistinguishable or insufficiently distinguishable from the “Original Taste” variant, violating multiple sections of the FCCPA.
Deceptive packaging: NBC used identical packaging for its Zero Sugar and 50:50 variant of Limca Lime-Lemon flavored drinks, further misleading consumers.
The FCCPC noted that despite regulatory intervention, Coca-Cola and NBC failed to address these concerns adequately, indicating that the companies intentionally misrepresented the product variants as part of their business strategy.
Additionally, the commission has reserved the determination of potential abuse of market dominance and the appropriate penalties under the FCCPA and Administrative Penalties Regulation 2020 for further action.
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The FCCPC has ordered Coca-Cola and NBC to ensure clear and acceptable packaging, labeling, and differentiation between their product variants, satisfactory to the commission.
The companies are also required to launch a robust advertising campaign to help consumers distinguish between the different variants without confusion or deception.
Furthermore, the companies will be under FCCPC supervision for a period of 24 months to ensure compliance.
This development follows a recent FCCPC action on July 19, where the commission fined Meta $220 million for data privacy violations.