We will not sanction alleged unfair marketing tactics by Coca-Cola Nigeria on appeal, FCCPC assures
The Federal Competition and Consumer Protection Commission (FCCPC) has assured the Competition and Consumer Protection Tribunal that it will not take any "regulatory or enforcement action" against Coca-Cola Nigeria Ltd pending a decision on its appeal against the Commission's claims against the company.
The commission had accused Coca-Cola of using misleading trade descriptions and unfair marketing tactics on its original flavour and lower sugar products.
FCCPC lawyer, Abimbola Ojenike, made the oral submission on Wednesday before a three-man panel of the tribunal, led by Thomas Okosu.
This follows several motions by Coca-Cola Nigeria Limited in Appeal No. CCPT/APP/5/2024, which asked the court to restrain the FCCPC from taking further regulatory and enforcement action against the appellant pending the determination of its appeal for modification.
FCCPC sues Coca-Cola
Nairametrics earlier reported that the commission found that Coca-Cola Nigeria and Nigeria Bottling Company (NBC) violated Section 116 of the FCCPC Act and Section 124 1(a) of the Commission Establishment Act.
The FCCPC noted that Coca-Cola Nigeria Ltd and NBC were guilty of misleading the public by describing their Coca-Cola "Original Taste, Less Sugar" variant as their "Original Taste" variant in terms of formulation. The Commission stated that the issue of abuse of dominance and the appropriate sanction under the FCCPA and the 2020 Administrative Penalty Regulations (APR) are reserved for further regulatory action, with sanctions to be imposed in due course. The statement reads: "Accordingly, and given that the conduct continues and remains, the Commission entered, issued and served its final order on Coca-Cola and NBC on July 29, 2024. The final order contains the Commission's findings, some of which include:
"Misleading trade descriptions under section 116 of the FCCPA, continuing to mislead consumers into believing that the original flavor of Coca-Cola is not materially different from the original flavor of Coca-Cola 'sugar-free'."
"Unfair Marketing Tactics: Contrary to Section 124(1)(a) of the FCCPA, Coca-Cola Nigeria is selling Coca-Cola Original Flavor Less Sugar in packaging that was initially indistinguishable and is now not sufficiently distinguishable from Coca-Cola Original Taste, in violation of FCCPA Sections 123(1)(a), (b) and (c). »
The news continues after this announcement
"Furthermore, Coca-Cola and NBC, following regulatory intervention, must take appropriate steps to amend the misleading conduct, which indicates that the companies acted intentionally in representing Coca-Cola Original Taste Less Sugar as Coca-Cola as part of a deliberate marketing strategy. . »
The Commission also accused NBC of using identical packaging for Zero Sugar and the 50:50 variant of Limca Lime-Lemon flavoured drinks, thereby misleading consumers and violating sections 17(g), 116(1) and (2) and 123 of the FCCPA. and section 2(a) of the National Food and Drug Administration and Control Act of 2004.
What happened in court?
When the session resumed on Wednesday, Professor Gbolahan Elias SAN and Abubakar G. Anafi announced the appearance of Coca-Cola. Anafi asked the court to restrain the KKPPK from taking further regulatory and enforcement action against the complainant. "The second application is dated August 21, 2024 and also seeks to restrain the respondent from taking further regulatory and enforcement action against the complainant," he added.
In response, FCCPC's lawyer, Ojenike, assured the court that the Commission will stop taking any enforcement action against Coca-Cola pending the decision on the appeal. "In this matter seeking the injunction, we undertake that the Commission will not take any regulatory or enforcement action while the appeal is pending," he said.
Ojenike also asked the court to allow it to formally respond to Coca-Cola's amended notice of appeal. Anafi told the court that considering the undertaking of counsel KKPPK that the Commission will not take any enforcement and regulatory action against the complainant, he is seeking the withdrawal of the aforementioned motions. Ruling on his submissions, Okosu ruled that following the FCCPC's engagement, the appellant withdraws its motions to stay. "In view of the withdrawal of the motions by the Complainant based on the FCCPC's undertaking not to take any enforcement action against Coca-Cola pending the decision of the appeal, the application to withdraw the motions is granted," the judge said.
History of the FCCPC investigation
The commission had said it launched its investigation in 2019 after the companies switched the Coca-Cola brand from regular sugar to non-nutritive sweeteners.
These practices allegedly follow similar actions with the Sprite and Fanta brands, which violated FCCPA regulations on misleading trade descriptions and abuse of market dominance in certain jurisdictions. Coca-Cola denied the allegations.
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