Final order issued against Coca-Cola Nigeria over misleading packaging claims

07 Aug 2024 --- The US Federal Competition and Consumer Protection Commission (FCCPC) has issued a final order against Coca-Cola Nigeria (Coca-Cola) and Nigerian Bottling Company (NBC) for misleading trade descriptions and unfair marketing tactics related to the Coke beverage brand and other products.

This decision is based on an investigation that began in 2019 when Coca-Cola and NBC initiated a transition in the Coke brand from a formulation containing regular sugar to one with non-nutritive sweeteners.

By the end of 2020, the FCCPC had gathered evidence showing violations of the Federal Competition and Consumer Protection Act (FCCPA). Yet, according to the commission, despite warnings, the companies failed to take appropriate steps to modify the marrketing.

Findings disclosed that the companies had misrepresented their Coca-Cola “Original Taste, Less Sugar” variant as identical to the classic “Original Taste” formulation.

“The companies knowingly and intentionally applied a trade description to the Coca-Cola Less Sugar variant that could reasonably mislead consumers as to the nature and feel of the drink, in such a manner that consumers would assume that the product was the Coca-Cola Original Taste variant,” FCCPC says in an official report.

The findings also pointed out that the companies marketed the “Less Sugar” variant on the packaging in a way that was initially indistinguishable and is now not sufficiently distinguishable from Coca-Cola Original Taste. 

Questions were raised about whether Coca-Cola’s pricing strategies in certain regions of Nigeria were due to its market power in those areas.Additionally, NBC used identical packaging for both the Zero Sugar and 50:50 variant of the Limca Lime-Lemon flavored drink. The report further says that NBC applied deceptive trade descriptions to the two variants and used the same NAFDAC registration number for both products, “impliedly and falsely communicated to the consumer that both products are the same.”

Mandate for clearer labeling 
This July, the FCCPC gave the final order that Coca-Cola and NBC now have to ensure clear and acceptable packaging and labeling that distinctly differentiates between Coca-Cola Original Taste and Coca-Cola Original Taste “Less Sugar.”

The companies are also mandated to immediately stop any Coca-Cola advertisements that portray their products misleadingly and conduct a robust campaign to educate consumers on distinguishing product variants. 

Both companies will also be subject to a 24-month monitoring period by FCCPC-approved monitors and have to develop a Standard of Business Conduct on Consumer Protection and Competition Compliance, including training for all relevant personnel.

Coca-Cola responded to the FCCPC’s order, claiming that the company “provides clear, accessible nutrition information on our packaging in line with national regulatory requirements and is committed to transparency for consumers.”

“Our priority is safeguarding consumer interests and we will continue to work constructively with the government on this matter,” the company says in an official statement.

“We strongly believe that the Coca‑Cola System in Nigeria has complied with all regulations and look forward to the opportunity to bring this topic to closure.”

By Sichong Wang