Coca-Cola Nigeria faces backlash over misleading product changes, says FCCPC. Discover the details and consumer reactions to this controversy.
After a comprehensive investigation, the Federal Competition and Consumer Protection Commission (FCCPC) has found Coca-Cola Nigeria Limited and Nigerian Bottling Company Limited (NBC) guilty of breaching consumer communication standards and transparency regulations.
In June 2019, an investigation was launched regarding the transition of Coca-Cola, Fanta, and Sprite brands from traditional sugar to non-nutritive sweeteners. Consumers were not properly informed about this change.
A signed statement from the management disclosed that Coca-Cola and NBC had continuously breached the Federal Competition and Consumer Protection Act (FCCPA) by utilizing misleading trade descriptions as well as unfair marketing tactics, following an FCCPC investigation.
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The statement indicated that the corporations promoted their “Original Taste, Less Sugar” option as indistinguishable from traditional Coca-Cola despite differences in composition.
This false advertising also applied to their other offerings, including Fanta and Sprite which underwent undisclosed alterations.
The FCCPC stated it had amassed convincing proof of these infractions by December 2020.
According to the commission, Coca-Cola and NBC did not offer clear and truthful information regarding their products, which intentionally confused customers.
The internal documents of these companies also revealed that they were aware of the ineffectiveness of how they differentiate their items but still continued to mislead people.
Coca-Cola and NBC had initially agreed to implement clearer product descriptions as a means of addressing the issue, according to FCCPC. Nonetheless, they ultimately reneged on this agreement in favor of a business strategy that did not comply with regulatory requirements.
The FCCPC’s action led to renewed communication with the companies; however, Coca-Cola and NBC failed to meet expectations despite several chances for compliance.
The FCCPC released its findings through a Final Order on July 29th.
Coca-Cola and NBC were flagged for utilizing deceptive trade descriptions, specifically in the promotion of Coca-Cola’s Original Taste along with its “Less Sugar” alternative.
Additionally, both entities violated multiple sections of the FCCPA by engaging in unfair marketing practices.
By misleading consumers into believing that Coca-Cola Original Taste is not materially different from Coca-Cola Original Taste “Less Sugar,” there has been a violation of Section 116 FCCPA dealing with deceptive trade descriptions.
According to the statement, Coca-Cola Nigeria has engaged in unjust marketing strategies by violating Section 124(1)(a) of the FCCPA. The company promoted its product known as “Coca-Cola Original Taste Less Sugar” with packaging that resembled and presently resembles that of their flagship drink, “Coca-Cola Original Taste”, a violation of Sections 123(1)(a), (b), and (c)of the FCCPA.
Additionally, the FCCPC observed that NBC breached regulatory standards by utilizing identical packaging for both the Zero Sugar and 50:50 renditions of Limca Lime-Lemon flavored beverage while misleading consumers.
The commission stated that it is withholding its decision regarding the matter of Abuse of Dominance and the fitting sanctions as per FCCPA and Administrative Penalties Regulation 2020.
The penalties will be applied at a suitable time.
