Coca Cola Must Pay N186m Over Deceptive Trade Practices –Tribunal

Coca-Cola Nigeria Limited (CCNL must pay a fine of N186 million slammed on it by regulatory authorities over alleged deceptive trade practices.

This follows the dismissal of a settlement agreement which the bottling company allegedly entered with the Federal Competition and Consumer Protection Commission (FCCPC).

However, the tribunal has expressed an opposition to the settlement terms, adding that Coca Cola should pay the stipulated penalty.

A 3-member panel, led by Thomas Okosu, delivered the tribunal’s ruling.

The background to the case is that the FCCPC had earlier accused Coca-Cola Nigeria Limited and its sister company of using misleading trade descriptions and unfair marketing tactics for their products “Original Taste” and “Less Sugar.”

This it said, violated trade practices and may lead to the bottling company being sanctioned.

IT said applying allegedly deceptive trade descriptions to the two variants and distributing them to consumers, violated Section 116(3) of the FCCPA rules, and as a result directed Coca Cola to pay a penalty of N186,666,666.67 on or before September 6, 2024.

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On the other hand, Coca-Cola Nigeria, cited 15 legal grounds against FCCPC’s N186 million penalty over its marketing practices

Its legal team led by Professor Gbolahan Elias (SAN), wanted the  tribunal to restrain the Commission from enforcing any provisions of its final and supplementary Orders regarding the said sanction.

It predicated its argument on concern over fair hearing, and the argument that FCCPC did not have jurisdiction over the company’s products, and that the National Agency for Food and Drug Administration and Control (NAFDAC) which did, actually approved the products in contention.

In response, counsel for the FCCPC Abimbola Ojenike, amongst others, described as unfounded, the bottling company’s claims of unfairness against the company and lack of jurisdiction on the part of the FCCPC

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Following a lengthy argument and counter, the tribunal agreed with the FCCPC’s position that Coca-Cola misled Nigerian consumers through deceptive trade descriptions, even if the products were NAFDAC-approved.

The tribunal subsequently dismissed CCNL’s appeal for lacking merit and ordered the company to pay the N186 million penalty within 60 days.