FCCPC Indicts Coca-Cola Nigeria and NBC for Misleading Consumers, Unveils Report on Anti-Competitive Practices

The Federal Competition and Consumer Protection Commission (FCCPC) has released a detailed report indicting Coca-Cola Nigeria Limited and Nigerian Bottling Company (NBC) Limited for misleading branding and anti-competitive practices. The report follows an extensive investigation into regulatory violations by the two companies, which allegedly deceived Nigerian consumers by obscuring product differences that are evident in other markets.

The FCCPC’s investigation, which concluded on July 29, 2024, revealed that both Coca-Cola Nigeria and NBC presented a united front during the inquiry, claiming joint responsibility for product development, branding, marketing, and sales. However, the Commission found that clear lines of responsibility existed, highlighting multiple violations.

One significant finding was that NBC provided a production log for its Abuja plant that was fraught with omissions, rendering it misleading. The FCCPC pointed out that consumers were not made aware of the distinctions between products available in Nigeria and those in other countries, with Coca-Cola and NBC failing to clearly differentiate between variants like the Coke Original Taste and Coke Less Sugar.

The investigation began in June 2019, when the FCCPC noticed the introduction of Coke Original Taste-Less Sugar, a new variant of Coca-Cola, into the market without adequate publicity or consumer information. The new variant was nearly identical in packaging to the original Coke, leading to consumer confusion. The Commission also discovered similar issues with NBC’s Limca lemon-lime flavoured drink, where two distinct variants were sold in identical packaging with the same NAFDAC registration numbers, despite differences in composition and nutritional value.

As the investigation progressed, the FCCPC expanded its scope to examine Coca-Cola’s product pricing across Nigeria, following complaints of significant price variations and potential market dominance abuse. While the findings on pricing did not conclusively prove excessive pricing, they raised concerns, particularly regarding pricing practices in Ebonyi State in 2019.

The FCCPC’s report concluded with a stern warning to Coca-Cola Nigeria and NBC, citing violations of multiple sections of the FCCPA and NAFDAC regulations. The Commission’s findings emphasized the companies’ responsibility to provide clear, accurate information to consumers and ensure transparency in product differentiation and pricing.

The FCCPC’s actions underscore its commitment to protecting Nigerian consumers from deceptive business practices, with the potential for further investigations into Coca-Cola Nigeria’s market dominance.