The Federal Competitors and Shopper Safety Fee (FCCPC) has made an endeavor earlier than the Competitors and Shopper Safety Tribunal that it’s going to not take any “regulatory or enforcement motion” towards Coca-Cola Nigeria Ltd pending the willpower of its attraction towards the Fee’s allegations towards the corporate.
The Fee had accused Coca-Cola of alleged deceptive commerce descriptions and unfair advertising techniques of their merchandise Unique Style and Much less Sugar.
FCCPC lawyer Abimbola Ojenike made the oral endeavor on Wednesday earlier than a three-member panel of the tribunal, led by Thomas Okosu.
This follows a number of motions by Coca-Cola Nigeria Restricted in attraction quantity CCPT/APP/5/2024, which urged the tribunal to restrain the FCCPC from taking additional regulatory and enforcement motion towards the appellant pending the willpower of its amended attraction.
FCCPC’s accusations towards Coca-Cola
Nairametrics beforehand reported that the fee discovered Coca-Cola Nigeria and Nigeria Bottling Firm (NBC) in alleged violation of part 116 of the FCCPC Act in addition to part 124 1(a) of the Fee’s Institution Act.
- The FCCPC famous that Coca-Cola Nigeria Ltd and NBC had been responsible of deceiving the general public by describing the variant of its Coca-Cola ‘Unique Style, Much less Sugar’ as the identical as its ‘Unique Style’ variant when it comes to formulation.
- The Fee said that the problem of abuse of dominance and the suitable penalty underneath the FCCPA and Administrative Penalties Regulation 2020 (APR) have been reserved for additional regulatory motion, with penalties to be imposed sooner or later.
The assertion reads, “Accordingly, and contemplating that the conduct continues and stays, the Fee has entered, issued, and served its Last Order on Coca-Cola and NBC on July 29, 2024. The Last Order comprises the Fee’s findings, a few of which embody:
“Deceptive commerce descriptions underneath Part 116 FCCPA by persevering with to mislead customers into believing Coca-Cola Unique Style shouldn’t be materially totally different from Coca-Cola Unique Style ‘Much less Sugar.”
“Unfair advertising techniques: Opposite to Part 124(1)(a) of the FCCPA, Coca-Cola Nigeria markets Coca-Cola Unique Style Much less Sugar in packaging first, indistinguishable, and no longer sufficiently distinguishable from Coca-Cola Unique Style, opposite to Sections 123(1)(a), (b), and (c) of the FCCPA.”
“Additional, Coca-Cola and NBC, after regulatory intervention, nonetheless did not take applicable steps to change deceptive habits, demonstrating that the businesses acted deliberately by misrepresenting Coca-Cola Unique Style Much less Sugar as Coca-Cola Unique Style in a deliberate enterprise technique.”
The Fee additional accused the NBC of utilizing an identical packaging for each Zero Sugar and its 50:50 variant of the Limca Lime-Lemon-flavored drink, allegedly deceptive customers and violating Sections 17(g), 116(1) & (2), and 123 of the FCCPA and Part 2(a) of the Nationwide Company for Meals and Drug Administration and Management Act 2004.
What transpired on the tribunal
On the resumed sitting on Wednesday, Professor Gbolahan Elias SAN and Abubakar G. Anafi introduced the looks of Coca-Cola.
- Anafi urged the tribunal to restrain the FCCPC according to its motions searching for restraining orders.
“The second movement is dated August 21, 2024, and additionally it is searching for to restrain the respondent from taking additional regulatory and enforcement motion towards the appellant,” he added.
- Responding, FCCPC lawyer Ojenike assured the tribunal that the Fee would halt taking any enforcement motion towards Coca-Cola pending the willpower of the attraction.
“On this case searching for an injunction, we offer an endeavor that the Fee won’t take any enforcement or regulatory step whereas the attraction is pending,” he stated.
- Ojenike additionally urged the tribunal to permit it to formally reply to Coca-Cola’s amended discover of attraction.
- Anafi instructed the tribunal that in view of the endeavor by the counsel of FCCPC that the Fee won’t take any enforcement and regulatory motion towards the appellant, he applies to withdraw the motions aforementioned.
- Ruling on their submissions, Okosu held that following FCCPC’s endeavor, the appellant’s withdrawal of its restraining motions is granted.
“In view of the withdrawal of the motions by the appellant predicated on the endeavor of the FCCPC that it’s going to not take any enforcement motion towards Coca-Cola pending the willpower of the attraction, the applying to withdraw the motions is granted,” the choose stated.
Historical past of the FCCPC investigation
The Fee had clarified that it initiated its investigation in 2019 after the businesses transitioned the Coke model from common sugar to non-nutritive sweeteners.
It was alleged that these practices adopted related actions with the Sprite and Fanta manufacturers, which violated FCCPA rules on deceptive commerce descriptions and abuse of dominant market positions in sure areas.
Coca-Cola had denied the allegations.
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