The Competition and Consumer Protection Tribunal in Abuja on Monday rejected the terms of settlement between the Nigerian Bottling Company Limited (NBC) and the Federal Competition and Consumer Protection Commission (FCCPC), while upholding the Commission’s N190 million penalty against NBC for misleading packaging of its Coke products, among other issues.
The Tribunal’s three-member panel, led by Thomas Okosun, delivered the ruling and judgement in an appeal filed by NBC.
Recall that the FCCPC had alleged that Coca-Cola Nigeria Ltd and NBC misled consumers by describing the “Original Taste, Less Sugar” variant of Coca-Cola as identical in formulation to the “Original Taste” variant.
NBC subsequently approached the Tribunal, requesting that it set aside the Commission’s N190 million fine, citing multiple grounds.
Nairametrics previously reported that NBC admitted before the Tribunal that the FCCPC obtained evidence from the company confirming that the mislabeling of the zero-sugar variant of Limca Lime-Lemon resulted from a production error at one of its eight factories—specifically, the Abuja plant.
In its amended appeal, exclusively obtained by Nairametrics, NBC stated that “the mislabeling was accidental, not deliberate.”
NBC, which holds the Coca-Cola bottling franchise, also disputed the FCCPC’s claims that Coca-Cola Nigeria Ltd (CNL) and NBC used misleading trade descriptions and unfair marketing tactics in labeling their Coke products, including the “Original Taste” and “Less Sugar” variants.
Ojenike maintained that evidence presented during the investigation indicated that Coca-Cola and NBC violated Sections 17(2), 116, 123(1)(a–c), and 124(1)(a) of the Federal Competition and Consumer Protection Act (FCCPA).
He asked the Tribunal to dismiss NBC’s appeal for lack of merit and uphold the FCCPC’s orders.
During Monday’s judgment proceedings, NBC’s counsel, O. Ogunride, informed the court that a settlement had been reached with the FCCPC.
“We are pleased to inform the Tribunal that the parties have agreed to terms of settlement, and we urge the court to adopt the settlement as its consent judgment,” she said.
“The notion of arrest of judgment is unknown to Nigerian law,” the Tribunal ruled.
“This undermines the FCCPC’s role as a regulator,” Okosun said.
The Tribunal further held that the FCCPC’s acceptance of a settlement after final address conflicted with its public regulatory mandate.
“The Tribunal cannot indulge in private compromises; we must uphold our constitutional duty to the public,” he said.
In delivering its final verdict, the Tribunal affirmed that the FCCPC’s five-year investigation, findings, and penalties were lawful and aligned with the Nigerian Constitution.
The Tribunal ruled that NBC’s actions were clearly misleading and violated Nigerian law.
The Tribunal dismissed NBC’s appeal for lacking merit and affirmed the fine.
The Tribunal ordered NBC to pay the N190 million penalty within 60 days of the judgment.
Nairametrics reports that Coca-Cola Nigeria Limited (CCNL) and the FCCPC are also before the Tribunal over the legality of an additional N186,666,666.67 penalty related to CCNL’s labeling and marketing practices.
On December 11, 2024, the FCCPC agreed not to take regulatory or enforcement action against NBC and Coca-Cola Nigeria Ltd pending the resolution of their respective appeals.
My name is Nnaemeka Onyekachi, a writer, public speaker and an award winning journo with over 5,000 reports on a wide range of topics associated with the Nigerian society and the international community. Currently serving as a Senior Editorial Analyst at Nairametrics, my passion lies in delivering insightful financial,corporate, economic news and analysis on foreign relations, governance, judiciary and legislature.
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